Master the Hammer Candlestick Pattern in Trading!

00:00 - Hey Trader!!! Let’s talk 
about the hammer candlestick,   one of the most powerful 
reversal patterns in trading! A hammer candlestick looks just like its name. 
A small body at the top and a long lower wick,   at least twice the size of the body. Ideally, it 
has little to no upper wick. It typically forms   after a strong downtrend and signals that sellers 
are losing momentum, while buyers are stepping in.
00:19 - Here’s why it’s so important: the long 
lower wick shows that, as the price dropped,   buyers entered aggressively, pushing the 
price back up before the candle closed.   This shift often indicates bullish pressure 
and a potential trend reversal to the upside. To trade it effectively, look for hammer 
candlesticks at strong support levels. If   you spot a hammer candlestick, wait for 
it to close before entering a trade. Your  
00:38 - entry point should be on the next candle, but 
only if it breaks above the hammer's high. Set your stop loss just below the hammer’s wick 
to protect your trade. For your target, aim for a   risk-to-reward ratio of 2:1—that means your profit 
target should be twice the size of your stop loss. Please, keep our top recommendations in 
mind, and best of luck in your trades!