Powerful Hammer Candlestick: Spot Reversals & Profit Big! :
Hammer
The powerful hammer is a single candlestick pattern that usually forms after a downtrend. It has a small body and a long lower wick, which is at least twice the size of the body. The absence or small size of the upper shadow is also an important aspect of this pattern. The hammer signifies a potential reversal, meaning buyers have stepped in to push prices higher after a period of decline.
Key Characteristics of a Hammer Pattern:
- Appears after a downtrend.
- The lower shadow is at least twice the size of the body.
- No or very small upper shadow.
- The color of the body doesn’t matter, though a green body is stronger than a red one.
Hammer Candlestick Pattern
