#candlestick_patterns "A Hammer candlestick indicates a potential reversal from a downtrend to an uptrend. It features a small body near the top, a long lower shadow at least twice the body’s length, and little to no upper shadow. This formation shows that buyers have stepped in after sellers drove the price down, pushing it back up near the opening price.

Typically seen at the bottom of a downtrend, a Hammer signals that selling pressure might be easing. Confirmation is important; this can be achieved by waiting for a bullish candle or checking for increased trading volume.

To trade a Hammer, enter a buy position when the price surpasses the Hammer's high and set a stop-loss below its low. For greater accuracy, consider using support levels or indicators like RSI or MACD. Remember, the Hammer isn't foolproof, so additional confirmation tools are crucial for informed trading".