Binary Signal Pattern 8

Binary Signal Pattern 8

Hammer

The hammer is a bullish reversal candlestick pattern consisting of only one candle. This is a bullish reversal candlestick pattern that forms after a downtrend at the bottom or support levels. The candle looks like a hammer because it has a longer, lower wick and a short body at the top of the candlestick, with a little or no upper wick. The body of the candlestick represents the difference between the opening price and the closing price, while the shadow shows the high and low prices for the period. The low of the long shadow means that the seller pushes the price down during the trading session. However, the strong finish indicates that the buyer has regained its footing to end the session with a strong position. The hammer can have a green or red body. If it’s at the bottom and it has a green body then it’s slightly more bullish than it has a red body. The Hammer is confirmed when the next candle is bullish, conforming that the bulls now have strength and are taking control. This is a good sign for the potential reversal of financial markets when you see a hammers in a downward trend.