DW8 Growth, page-11136

Red hammer candlestick yesterday.

What Is a Hammer Candlestick?

A hammer candlestick is a technical trading pattern that resembles a “T” whereby the price trend of a security will fall below its opening price, illustrating a long lower shadow, and then consequently reverse and close near its opening. Hammer candlestick patterns occur after a security has fallen in price, typically over three trading days. They are often considered signals for a reversal pattern.

Is a Hammer Candlestick Pattern Bullish?

The hammer candlestick is a bullish trading pattern that may indicate that a stock has reached its bottom, and is positioned for trend reversal. Specifically, it indicates that sellers entered the market, pushing the price down, but were later outnumbered by buyers who drove the asset price up. Importantly, the upside price reversal must be confirmed, which means that the next candle must close above the hammer’s previous closing price.

Understanding Hammer Candlesticks

A hammer occurs after the price of a security has been declining, suggesting the market is attempting to determine a bottom.

Hammers signal a potential capitulation by sellers to form a bottom, accompanied by a price rise to indicate a potential reversal in price direction. This happens all during a single period, where the price falls after the opening but then regroups to close near the opening price.

Appears a flag is forming following the flagpole on 10/11/2021. Should break out within a week with another flagpole.