Hammer on High Volume after Double Doji The Hammer candlestick...

Hammer on High Volume after Double Doji

The Hammer candlestick formation is viewed as a bullish reversal candlestick pattern that mainly occurs at the bottom of downtrends...After a downtrend, the Hammer can signal to traders that the downtrend could be over and that short positions could potentially be covered.

The chart shows 2 prior day's Doji's (signs of indecision) that suggested that prices could be reversing trend; in that case and for an aggressive buyer, the Hammer formation could be the trigger to potentially go Long.