A Quick Overview of Hammer Candlestick Patterns:
The Hammer candlestick pattern has a small body and a long lower shadow and appears at the bottom of a lower trend. A hammer indicates that, despite selling pressure during the day, significant purchasing demand finally drove the price upward. Although the color of the body varies, but, the green hammers imply a stronger bull market than red hammers. According to Bulkowski, this reversal predicts higher prices with an 60% accuracy rate.
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