https://traderthings.in/hammer-candlestick-pattern-meaning-strategies/ 1). The Hammer candlestick pattern is a bullish reversal pattern that typically forms at the bottom of a downtrend. 2). It signifies a potential turnaround in price, suggesting that the downward momentum might be ending and an upward movement could be starting. 3). The pattern is named “Hammer” due to its shape, which resembles a hammer with a long handle (shadow) and a small head (body).