What are Hammer Candlesticks in Trading?

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About Hammer Candlesticks in Trading

It is one of the most popular candlestick patterns traders use to gauge the probability of outcomes when looking at price movement.
A hammer is a price pattern in candlestick charting that occurs when a security trades significantly lower than its opening but rallies within the period to close near the opening price.
This pattern forms a hammer-shaped candlestick, in which the lower shadow is at least twice the size of the real body.
The body of the candlestick represents the difference between the opening and closing prices, while the shadow shows the high and low prices for the period.
The hammer candlestick occurs when sellers enter the market during a price decline. By the time the market closes, buyers absorb selling pressure and push the market price near the opening price.
The close can be above or below the opening price, although the close should be near the open for the real body of the candlestick to remain small.
Analysts view it as a potential bullish trend reversal indicator, mainly appearing at the end of a downtrend.
It could be used as a leading intraday indicator to signal a change in bullish/bearish momentum.

Q1) What is Nifty?

NIFTY is a market index introduced by the National Stock Exchange (NSE). It is a blended word – National Stock Exchange and Fifty coined by NSE. Nifty was established in 1996 under the name CNX Nifty. Further, in 2015, it was renamed Nifty 50. NIFTY 50 is a benchmark-based index and the flagship of NSE. It represents the performance of the 50 largest and most actively traded stocks listed on the NSE.

Source: Stock Market Highlights: Nifty surpasses 19,850 hurdle to form hammer candlestick. What traders should do on Wednesday