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Glossaire du trading

Hammer

Technical Analysis

Ce que ça veut dire

A candle with a small body near the top and a long lower wick, forming a hammer shape. It suggests buyers rejected lower prices and a bounce may follow.

Exemple

After a decline, a stock opens at $95, drops to $90, then closes at $94.80. The long lower wick and small body near the top form a hammer at support.

L'erreur des débutants

Beginners see a hammer anywhere and buy. A hammer only matters after a downtrend and at support -- one in the middle of nowhere is just noise.

Termes liés

  • Candlestick — A bar that shows the open, high, low, and close price for a period. The body is colored (g…
  • Doji — A candle where open and close are nearly equal, making a thin cross or plus shape. It sign…
  • Engulfing Pattern — A two-candle reversal signal where the second candle completely covers the body of the fir…

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