Hammer Candle
Hammer Candle is one of the most powerful bullish reversal signals , especially when trading NSE stocks and indices like NIFTY 50, Bank Nifty, and Midcap stocks . What is a Hammer Candle? A Hammer is a single-candle bullish reversal pattern that forms after a downtrend . Key Characteristics: Small real body at the top of the candle Long lower shadow (at least 2–3 times the body) Little or no upper shadow Appears after continuous price decline 📌 It shows that sellers pushed the price down, but buyers stepped in strongly and closed near the highs. Psychology Behind the Hammer In NSE stocks, the Hammer often appears near: Strong support zones Previous demand areas Moving averages (50 EMA / 200 EMA) During the session: Bears dominate initially Bulls absorb selling pressure Price recovers sharply before close This shift indicates trend exhaustion and a potential trend reversal . Hammer Candle in the Indian Market (NSE) The Hammer pattern works...