🔥 WHAT IS HAMMER 🔨 CANDLESTICK ?

A Hammer candle is a bullish reversal candlestick pattern that forms at the bottom of a downtrend or in a bearish market. It's a single candle that signals a potential reversal to the upside.

Here are the key characteristics of a Hammer candle:

1. Forms at the bottom of a downtrend or in a bearish market.

2. Has a small real body (the area between the open and close prices).

3. Has a long lower shadow (the area between the low price and the real body).

4. The lower shadow is at least twice the length of the real body.

5. The color of the Hammer can be either green or red, but the bullish reversal implications are the same.

The Hammer candle indicates that:

1. Sellers pushed prices lower, but buyers took control and pushed prices back up.

2. There's a strong demand for the asset at the current price level.

3. A potential reversal to the upside is likely.

Traders often use the Hammer candle as a buy signal, especially when combined with other technical indicators or chart patterns.