The Hammer candlestick pattern can form at the bottom

KPIGREEN The Hammer candlestick pattern can form at the bottom of the market in either green or red colour and may indicate a potential trend reversal from bearish to bullish. Its key characteristic is a small real body near the top with a long lower shadow, showing that sellers initially pushed prices lower, but buyers stepped in strongly and brought the price back towards the opening or closing level. A green hammer generally reflects slightly stronger buying pressure than a red hammer, but colour is less important than its structure and location. When a hammer forms near a strong support zone after a prolonged downtrend, it signals possible selling exhaustion and a potential reversal. Confirmation from the next bullish candle, volume, and support levels is important before considering it a reliable reversal signal.