Hammer Candlestick Pattern Explained

From newtraderu.com

The hammer is the name used for a single candlestick chart pattern that is a bullish reversal signal. Its name comes from the fact that it visually looks like a hammer. As the short body of the candle is on top of a long wick (shadow). Many traders believe for it to be valid the lower wick that creates the handle must be at least twice the size of the upper body. The body must be on the top of the wick with a flat top and very little but preferably no upper wick. Hammers have a higher probability of being a valid reversal signal when found inside a downtrending chart. The lower wick shows an intraday sell off then ... (full story)