The Hammer candle is a Japanese candlestick pattern that appears in technical analysis of financial markets, indicating a potential reversal from a downtrend to an uptrend. The Hammer candle is characterized by the following features:
- A small body at the top
- A long tail at the bottom
- The color of the candle can be green or red, but the green color is considered more positive.
The Hammer candle typically appears at the end of a downtrend, signaling that sellers may have lost control and buyers are starting to take over the market. The Hammer candle can be a signal to buy or invest in financial assets.
