Hello Trader, the Hammer candle is a bullish reversal pattern found at the bottom of a downtrend. It resembles a hammer: a small body at the top and a long wick extending downwards. This wick indicates a sharp price decline, followed by buyers stepping in and pushing the price back up until it closes near the opening price. The longer the lower wick is compared to the body, the stronger the bullish signal. The hammer suggests that sellers may be lose control and a potential price increase is imminent.

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