A bullish hammer is a single candlestick pattern that signals a possible trend of reversal from falling prices to rising prices
Example of a Bullish Hammer Pattern It looks like a hammer, a small body at the top and a long lower shadow, showing strong buying after selling pressure
How is the Bullish Hammer Pattern Formed?
Prices fall sharply during the session, but buyers step in and push prices back up near the opening level
When Does the Bullish Hammer Pattern Occur? This pattern usually appears after a downtrend, when the market has been falling for some time
What Does a Bullish Hammer Pattern Tell You? It shows sellers are losing control, and buyers are gaining strength, hinting that prices may move up next
Key Reasons Why It Matters The bullish hammer helps traders spot early buying signals and potential trend reversals with limited risk
Disclaimer This content is for educational purposes only. It is not a buy/sell recommendation or investment advice. Market risks apply