How to Read Hammer Chart Pattern

Hi, in this moment we will learn about Hammer candlestick pattern chart. As you already knew that Hammer candlestick pattern is one of the most favorite forex reversal candlestick chart pattern. A forex trader uses this chart pattern to determine reversal chance in the forex market. In this article we will see how the Hammer candlestick pattern occurred. A hammer candlestick chart pattern is a candlestick formation who has a long lower tail or shadow. Hammer’s lower shadow is 2-3 times the length of its body. But hammer candlestick itself has a short body and it doesn’t has upper shadow.
Hammer candlestick pattern occurs if market price traded below the open price and ended at a high closing price. Hammer candlestick body can have a black or white candlestick body.
Hammer candlestick formation happens when the sellers traded and pulled the market price lower and then the buyers traded to close at the level above the open price. The hammer candlestick pattern usually occurs in a bearish trend and gives a bullish reversal signal.