#Hammer

The Hammer candle is one of the most well-known Japanese candlestick patterns used in technical analysis. It is a reversal candle that typically appears after a downtrend, indicating a potential reversal of the trend towards the upside.
2. Characteristics of the Hammer candle:
- Small body: Located at the top of the candle, it can be green (bullish) or red (bearish).
- Long lower shadow: It should be at least twice the length of the body, indicating rejection of lower prices.
- Short or non-existent upper shadow: Indicates that sellers lost control by the end of the session.
3. Interpretation of the Hammer candle's appearance:
- Initially, sellers push the price down, creating the long lower wick.
- Later, buyers enter strongly, pushing the price back up, closing near the opening price.
- This indicates that the market may reverse to the upside, especially if followed by confirmation with a strong bullish candle.
4. Strength of the signal:
- The Hammer signal becomes stronger if it appears at strong support levels.
- It increases in reliability if followed by a strong bullish candle that confirms the reversal.
- High trading volume during the formation of the Hammer enhances its strength.