Hammer
A hammer is a single candlestick pattern that forms when prices fall during the period but close near the opening price, producing a small real body at the upper end of the range and a long lower shadow. It is interpreted by some technicians as a potential reversal after a downtrend, especially when followed by confirming price action.
Example: On a daily chart, after a decline from 100 to 90, a hammer forms with a close near 92; observers await the next session's price action for confirmation.
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