I was stuck in heavy losses, watching the market crash.
It felt like everything was over.
Then I noticed something small but powerful:
A candle with a tiny body and a long lower wick.
That candle gave me hope.
It’s called the Hammer Candle.
And if you’re new to trading, you need to know about it.
What Is a Hammer Candle?
Appears after a big downtrend
Small body with a long tail below
Shows that buyers are pushing back
In simple words:
The market might stop falling and start going up!
But there’s more...
The Secret After the Hammer
If you see two big green candles after the hammer, it forms an Engulfing Pattern.
Why is it called "Engulfing"?
Because the green candles cover the red one before them, showing that buyers are now stronger.
Quick Tips:
The red candle before should have a big body and small wicks.
The green candles should be big and strong.
Together, they signal: "Trend Reversal!"
Important Things to Remember:
In a downtrend, the hammer is usually green.
In an uptrend (market going up too much), the hammer can be red — warning a possible fall.
Always check the trend!
Final Lesson:
Hammer and engulfing patterns are powerful signals, but not guarantees.
They are like a green light telling you:
"You can trade — but stay alert!"
Pro Tip:
Always wait for confirmation.
The hammer is good, but confirmation makes it stronger.