Candlestick Patterns→ Pattern Detail
Hammer
A bullish reversal candle with long lower wick at support
A hammer has a small body near the top and a long lower wick (at least 2x body). It shows sellers pushed price down but buyers fought back - a bullish reversal signal when appearing at support after a downtrend.
✓How to Recognize
- •Small body at top of candle
- •Long lower wick (2x+ body length)
- •Little to no upper wick
- •Appears at support after decline
⚡How to Avoid
- →Don't trade hammers at resistance
- →Require support level for validity
- →Wait for next candle to confirm
- →Not valid in RANGE regime