The appearance of an inverted hammer implies that the price was driven upwards during the day but met with resistance, causing it to fall and close near the opening price. This pattern shows the struggle between bulls and bears in the market, with the bulls trying to drive prices up and the bears resisting this upward movement.
A hammer candlestick pattern is a technical chart pattern that signals potential reversals in price trends. It resembles the shape of a hammer or the alphabet ‘T’, hence the name. This pattern is considered a bullish signal and typically appears at the end of a downtrend, indicating that the market could be nearing a bottom.
A spinning top is a type of candlestick pattern that signifies market indecision or a balance of forces. It is characterized by a short, compact body situated between two long wicks. The main feature of this pattern is that it reflects an equal opening and closing, hinting at a lack of clear direction in the market at the time.