supportbounce

A Hammer candle is a powerful price action signal that often appears after a downtrend or near a key support level. When this candle forms at support, it shows strong rejection of lower prices and signals a potential bounce or trend reversal.

What is a Hammer Candle?
A Hammer candle is characterized by:
•A small real body near the top of the candle
•A long lower wick (usually at least 2× the body)
•Little to no upper wick
This structure tells us that sellers pushed the price down, but buyers stepped in aggressively and closed the price near the highs.
Why Hammer at Support Matters
When a Hammer forms at a well-defined support level:
•It confirms buyer strength
•It shows rejection of lower prices
•It increases the probability of a bullish bounce or reversal
Support acts as a demand zone, and the Hammer confirms that smart money or strong buyers are defending this area.
How to Trade the Hammer Setup
✅ Confirmation is key
•Wait for the next candle to close bullish
•Higher volume adds more confidence
✅ Entry
•Enter above the Hammer’s high after confirmation
✅ Stop Loss
•Place below the Hammer’s low
✅ Targets
•Next resistance level
•Previous high or demand zone
Pro Tip
Avoid trading Hammer candles in isolation. Combine them with:
•Strong support zones
•Trend context
•Volume confirmation
•Market structure
$LINK $ATOM $NEAR

#HammerCandle #SupportBounce #PriceAction