TRADING GLOSSARY
Hammer
A hammer is a candlestick that appears after a decline, with a small body near the top of its range, a long lower shadow, and little or no upper shadow. It suggests rejection of lower prices and a possible bullish reversal, not a certain recovery.
EXAMPLE
In a hypothetical downtrend, price falls sharply during a session but recovers to close near the session high, leaving a hammer-shaped candle.
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Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure