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Technical Analysis

Hammer

A bullish reversal candlestick with a small body and long lower wick.

Full Definition

A hammer is a single-candle pattern with a small body at the top and a long lower shadow (at least twice the body length). It forms during downtrends and signals potential reversal. The pattern shows sellers pushed prices down, but buyers recovered most losses by the close. Confirmation comes from the next candle closing higher.

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