Beginning of the upward reversal
The hammer candle is one of the most famous reversal candles, usually appearing at the end of a downtrend, and is considered an early signal of a possible upcoming rise.
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✅ Shape of the hammer candle:
Small body (green or red).
Very long lower shadow (2 to 3 times the length of the body).
Short or non-existent upper shadow.
(We mentioned what the shadow and body are in the last lesson)
It often appears after a series of downward candles.
📌 Mental image: It resembles a real hammer, with a small head and a long handle.
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📈 What does a hammer candle mean?
The price was in a downtrend.
Sellers pushed the price down, but in the same session, buyers returned strongly and closed the price near the open.
This movement means that buyers have begun to take control, and the decline may have ended.
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❗Does every hammer mean a certain rise?
No. The presence of a hammer candle alone is not enough, but:
It must appear after a clear downtrend.
It is preferable to follow it with a green candle that confirms the rise (Confirmation candle).
Additional support from indicators like RSI or strong support areas = stronger signal.
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Apply this pattern to $BTC and you will be amazed by the result"
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