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Hammer

A small-bodied candle with a long lower wick, appearing after a decline.

CandlesticksBeginner

Definition

The long lower wick, often at least twice the body, shows sellers pushed price down but buyers drove it back up before the close. It is most notable at known support after a downtrend.

Watch out for

The same shape in an uptrend is called a hanging man and has the opposite interpretation. Waiting for confirmation from the next candle is common.

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