The Hammer candlestick forms when the open, high, and close are nearly the same, with a long lower shadow signaling a bullish rejection by buyers aiming to drive the market higher. The hammer is a reversal candlestick pattern when it occurs at the bottom of a downtrend . Characteristics of a Hammer Candlestick: Interpretation: Example As you can see the market was trending down, the formation of the hammer (pin bar) was a significant reversal pattern.The long shadow represents the high buying pressure from this point. Sellers was trying to push the market lower, but in that level the buying power was more powerful than the selling pressure which results…