🔨 The Hammer: Your Strongest Reversal Signal for Bottom Fishing

The Hammer is a bullish reversal candlestick pattern that appears at the bottom of downtrends. It has a small body at the top with a long lower shadow (at least twice the body length) and little to no upper shadow, resembling a hammer. This pattern shows that sellers pushed prices down, but buyers stepped in to drive the price back up, indicating weakening selling pressure and potential upward reversal. Traders look for hammers as buying opportunities, especially when confirmed by the next candle closing above the hammer's high.

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