Hammer Candlestick A Bullish Reversal Signal
The Hammer candlestick is a classic signal that often appears at the end of a downtrend, indicating that buyers are stepping in and the market may start shifting upward.
What It Tells Us
• Sellers pushed the price lower
• Buyers successfully rejected those lows
• Momentum begins to favor the upside
Key Features
• Small body near the top of the candle
• Long lower wick — at least 2× the body
• Little or no upper wick
Trading Tip
The Hammer is most effective when it forms at support or demand zones. Always wait for bullish confirmation on the following candle before taking a position.
Mastering this candlestick can help you spot potential reversals early and align trades with emerging bullish trends.
Follow setups on $BARD
BARD
1.1728
+4.34%