🧠 Smart Reversal Candles
Part 2: Hammer Candle – Strong Reversal or Deceptive Trap? 🔨🩸
🔨 What is a hammer candle?
It is a candle with a small body and a long lower wick
It appears after a strong drop or intense selling pressure
🎯 What does it mean?
The price dropped significantly during the candle… but buyers pushed it back strongly before the close!
And this is clear evidence of rejection of the drop = potential bullish reversal
✳️ How to ensure it’s a "real hammer"?
✅ The lower wick must be clearly longer than the body
✅ An increase in volume follows
✅ It appears at a support area or previous low
🚫 Do not rely on it alone!
If there is no confirmation afterwards (bullish candle or breakout)… it’s likely just a temporary rebound
⚠️ Beware of the “Hammer Trap”!
Some whales use the hammer shape to attract buyers
But if there is no real support or strong volume?
👉 Then it’s likely the bait is set for a loss!
📌 You must monitor the full context, not just the shape of the candle.
🧪 Test on a coin: $LINA
Open the chart on a 4-hour timeframe
Look at the hammer that appeared at the level 0.008
Was there a real reversal afterwards? Or a trap?
Watch the volume… and see the candle that follows
✨ Follow Trade Oracle X to understand the game before it starts
🚀 In the next part:
Hanging Man Candle – the same as the hammer… but a harbinger of a fall