Hammer Candlestick Formation
Description
A Hammer candlestick is composed of a single candlestick. It should occur during a downtrend. It is composed of a small real body, either red or green, with a small upper shadow and a large lower shadow. It shows that price moved much lower for the day, which is expected during a downtrend, but then moved back up, which shows a reversal of the bearish sentiment, and is a bullish signal.