A candlestick chart pattern that occurs when a security had been declining in previous sessions, and trades low throughout most of the session but by the end of the session it approaches or reaches its opening price. When charted, it gives the appearance of a hammer. A hammer sometimes indicates a bullish reversal.
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A hammer is a tool meant to deliver an impact to an object. The most common uses are for driving nails, fitting parts, forging metal and breaking up objects.
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