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🔨 What is a Hammer Candle?
A hammer candle is a type of Japanese candlestick that usually appears after a price decline, indicating a potential bullish reversal.
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✅ Specifications of the Hammer Candle:
A small body at the top.
A long lower wick (called a lower shadow), which should be at least twice as long as the body.
There is almost no upper wick or it is very short.
It often appears after a downtrend.
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🧠 What does the Hammer Candle mean?
It means that sellers were in control initially and pushed the price down.
But in the same candle, buyers entered strongly and pushed the price back up.
The result: the market shows signs of reversal and potential buying.
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📈 How do we deal with it in trading?
Do not enter the trade just because the candle appears.
Wait for a confirming bullish candle afterward.
It's best if it is close to strong support.