hammer candle

In trading, a hammer candle is a bullish reversal pattern that signals potential price reversal after a downtrend. Recognized by its small body and long lower wick, resembling a hammer, this pattern indicates that buyers have regained control after a period of selling pressure. Traders often look for hammer candles in conjunction with other technical indicators and price action signals to confirm potential trend changes. When spotted at key support levels, hammer candles can offer valuable insights into market sentiment and potential buying opportunities. By understanding how to identify and interpret hammer candles. Traders can make informed decisions and capitalize on bullish reversals in the market. Enhancing their trading strategies and profitability.