What is a hammer candle?

It is a candlestick pattern that appears at the end of a downtrend, indicating a potential price reversal upward.

Its characteristics:

- Small body (green or red).

- Long lower shadow (at least twice the length of the body).

- Short or nonexistent upper shadow.

Its significance:

It shows the strength of buyers after a decline, which may lead to a market reversal. The signal should be confirmed by subsequent movements.

Where it appears:

It appears in stocks and cryptocurrencies, especially at support levels or oversold conditions.

The difference between it and the inverted hammer:

The regular hammer has a long lower shadow, while the inverted one has a long upper shadow.

Advice:

Use it with other analysis tools, and avoid relying on it alone. Trading involves risks, so check other indicators before making a decision.#candlestick #CandelStickPattern #candelstick #PatternRepeats $UNI