Hammer is a reversal pattern configured by a small-body candlestick. Your lower shadow should be big, twice or more the size of your body. It is preferable that there is no top shadow, but if there is, it needs to be very small (smaller than body size). The hammer occurs after an upward correction movement or after a downtrend.
- Bullish: When the hammer candle is identified and its color is green.
- Bearish: When the hammer candle is identified and its color is red.