🕯 Candlestick Mastery #8: The Hammer

🔹 What It Is –

A single-candle bullish reversal pattern that appears after a downtrend. The candle has:

A small body near the top of the range.

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

Little to no upper shadow.

🔹 Meaning –

Shows that sellers pushed the price down during the session, but buyers regained control and pushed it back up before the close. This shift signals potential end of a downtrend.

🔹 How to Identify –

✅ Long lower wick (≥ 2x body size).

✅ Appears after a significant downtrend.

✅ Body color can be green or red, but green is more bullish.

🔹 How to Trade It –

1️⃣ Wait for the next candle to close above the Hammer’s high for confirmation.

2️⃣ Place stop-loss below the Hammer’s low.

3️⃣ Set profit target at the next resistance level.

💡 Pro Tip: Stronger signal when volume spikes during the Hammer candle.

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