The hammer candlestick is not an entry signal, but an 'observation signal'.

The characteristics of a hammer candlestick are a long lower shadow and a short body, indicating that there is buying interest below, but this is just the first step. If you really want to participate, you need to see how the next candlestick moves.

Left image: After the hammer appears, if the next candlestick closes directly above the high point of the hammer, it indicates a continuation of the bullish trend, confirming the reversal, which is the real entry opportunity.

Right image: Although a hammer also appeared, the subsequent price did not follow, but instead continued to weaken, indicating a failed reversal, and getting in early ended up being a 'hammered' situation.

To put it more simply, the hammer candlestick can only serve as a reminder, not a signal. Its usefulness depends on whether the following candlestick gives it respect.