Hammer Candlestick

Amidst the continuously evolving landscape of forex trading, Japanese Candlestick Patterns have risen as a priceless asset, furnishing traders with deep-seated insights into market trends and the dynamics of price action. Stemming from 17th-century Japan, these patterns have traversed geographical boundaries, captivating traders globally and cementing themselves as an essential element of their trading arsenal.

The group of candlestick patterns stands out such reversal patterns, which have only one candle in their structure. This trading technique was invented originally for the stock market, but soon it successfully proved itself in currency trading as well. 

The hammer candlestick pattern is frequently encountered in various markets and provides important information about a possible trend reversal. It is extremely important not only to identify it on the chart but also to use the information effectively. Let's consider in more detail this candlestick pattern, its types, and its features.