Hammer Candlestick Pattern 📉📉📉

📉 A hammer candlestick is a technical trading pattern that resembles a “T” whereby the price trend of a security will fall below its opening price, illustrating a long lower shadow, and then consequently reverse and close near its opening. Hammer candlestick patterns occur after a security has fallen in price, typically over three trading days. They are often considered signals for a reversal pattern.

📉 The hammer candlestick is a bullish trading pattern that may indicate that a stock or other assets like currency pairs/crypto coins has reached its bottom, and is positioned for trend reversal

📉 According to most textbooks: Whenever you spot a Hammer candlestick pattern, you should go long because the market is about to reverse higher. And that's what you do. The price immediately reverses and you get stopped out for a loss.

📉 Hammer candlestick is a unique candlestick pattern that indicates a potential trend reversal. Since it forms in a downtrend, traders associate the hammer with the return of bullish trend in the market. It is a short green candle with long lower shadow, which signifies lower price rejection by the market.

Do you use hammer candlestick pattern in your analysis ? What do you think about it ?