HAMMER CANDLE WHAT IS HAMMER CANDLISTICK PATTERN ? The hammer candlestick pattern is a popular candlestick pattern used in technical analysis of financial markets. It is a bullish reversal pattern that forms when a stock, currency, or other asset opens, trades lower during the day, and then rallies to close above its opening price. The hammer pattern has a small real body at the top of the candlestick, with a long lower shadow that is at least twice the length of the body. The pattern resembles a hammer, with the body representing the hammer's head and the lower shadow representing the handle. Traders often look for the hammer pattern when the market is in a downtrend, as it can signal that the trend is about to reverse and prices may start moving higher. However, as with any technical analysis tool, it is important to use the hammer pattern in conjunction with other indicators and analysis techniques to confirm its validity and make informed trading decisions.
Bearish Engulfing WHAT IS BEARISH ENGULFING ? Bearish engulfing is a candlestick pattern in technical analysis that signals a potential reversal in an uptrend. The pattern consists of two candles, the first one being a smaller bullish candlestick, followed by a larger bearish candlestick that completely engulfs the previous bullish candle. The bearish engulfing pattern is considered a strong signal because it shows that the selling pressure has overwhelmed the buying pressure. The larger bearish candlestick suggests that sellers have taken control of the market, and it is likely that the trend will reverse and start moving downwards. The bearish engulfing pattern is best used in conjunction with other technical indicators and analysis to confirm the potential reversal. Traders often look for the pattern in combination with overbought conditions, trendline breaks, and other bearish signals. It's important to note that no pattern is 100% accurate, and traders should always use prope...