Hammer

Hammer
A price pattern in candlestick charting that occurs when a security trades significantly lower than its opening, but rallies later in the day to close either above or close to its opening price. This pattern forms a hammer-shaped candlestick.
A hammer occurs after a security has been declining, possibly suggesting the market is attempting to determine a bottom. The signal does not mean bullish investors have taken full control of a security, it simply indicates that the bulls are strengthening.
The Art of Candlestick Charting - Part 1 - Discover the components and basic patterns of this ancient technical-analysis technique. The Art of Candlestick Charting - Part 2 - Learn why crowd psychology is the reason this technique works, and discover how to analyze 'hammers and 'hanging men'. The Art of Candlestick Charting - Part 3 - Take a look at continuation patterns and how they can confirm or deny trends. The Art of Candlestick Charting - Part 4 - Learn about more continuation patterns on the bullish and bearish sides: the engulfing pattern, harami and harami cross. Introduction to Technical Analysis - Here is an easy-to-understand tutorial on the various tools used in technical analysis, including moving averages, RSI, Bollinger bands, stock chart patterns, and much more.