#CFTCCryptoSprint Definition of a Hammer Candle:

It usually appears at the end of a downtrend.

It has a small body at the top.

A long lower shadow (at least twice as long as the body).

There is no upper shadow or it is very small.

🔸 The shape resembles a "hammer" 🔨, hence the name.

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🔸 Characteristics of a Hammer Candle:

Element Description

Previous trend: Down

Small body (either green or red)

Very long lower shadow (at least 2x longer than the body)

Short or nonexistent upper shadow

Message: Strong selling pressure, but buyers took control and closed the price close to the open.

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🔹 What does a hammer candle mean?

In a downtrend:

A hammer candle indicates that the price fell significantly during the session, but buyers came back strongly and pushed the price up before the close.

This signals that the selling may have ended, and an uptrend may have begun.

✅ However, a confirmation candle (a strong green candle) is needed to confirm the reversal.