Hammer
Small body at top, long lower wick. Bullish reversal signal at the bottom of a trend.
Bullish reversal
Difficulty: ●●○○○
Reliability: 6/10
Hammer appears after a decline. Sellers pushed low, buyers took control and closed near open. Long lower wick = rejection of low price.
When to look
Only after a clear downtrend. Otherwise it's just a wicked candle.
Confirmation
Next bullish candle closes above the hammer's high.