#شمعة The Hammer is one of the most well-known candlestick patterns used in technical analysis. It is a reversal candle that typically appears after a downtrend, indicating a potential reversal in the direction towards upward.
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: Its length should be at least twice the length of the body, indicating rejection of lower prices.
- Short or Absent Upper Shadow: Indicates that sellers have lost control by the end of the session.
3. Interpretation of the Hammer Candle Appearance:
- Initially, sellers push the price down, leading to the formation of the long lower shadow.
- Later, buyers enter strongly, pushing the price back up to close near the opening price.
- This indicates that the market may reverse to an upward direction, especially if followed by confirmation with a strong bullish candle.
4. Signal Strength:
- The hammer signal becomes stronger if it appears at strong support levels.
- Reliability increases if followed by a strong bullish candle confirming the reversal.
- High trading volume during the formation of the hammer enhances its strength.