This is what we call a hammer Candlestick pattern and you'll see this pattern on different time frames. So for example, if you see the hammer Candlestick pattern, let's say on The Daily time frame this is what it means right? This means right that this line over here. this is the opening price of the day. This over here is the closing price of the day.

What about this one over here. This is the highest price point in the market as well during the day and over here is the lowest price point during the day. So of course if you see this on a one hour time frame then this will be the opening price of the one hour candle. This is the closing price of the one hour candle.

This is the high over the over the last one hour and this is the lowest price over the last one hour. That's how it works. And for the hammer Candlestick pattern, what it means is that when the market open, the sellers quickly took control and pushed the price near the lows of the day assuming it's a daily time frame. Then suddenly the buyers found the strength and they push the price all the way up higher, finally closing near the highs of the day.

So this is a story between sellers and buyers and eventually for the day itself, the buyers have temporarily won the battle.