Hammer
BullishReversal1 candleReliability:
Small body on top, long lower shadow (≥2× the body) after a downtrend — a bullish reversal.
Description
After a decline, price is sold off hard intraday then recovers to close near the high, forming a long lower shadow like a hammer's handle.
Market psychology
Sellers tried to force price down but buyers stepped in aggressively and pushed back — seller exhaustion.
How to trade
Buy when the next candle breaks the hammer's high; stop-loss below the tail; best at support.
Confirmation
The next bullish candle closes above the hammer's body; higher volume is better.
Also known as: Bullish pin bar
Educational content only — not financial advice. Cryptorua reads public market data and never places orders.