I just noticed that many traders still do not master the hammer candle well, so it's worth delving into this. It is one of those patterns that appears right when the market is hitting bottom, and honestly, if you read it well, it can give you a real advantage.

The hammer candle has a very characteristic structure: a small body (can be green or red, it doesn't matter much) with a quite pronounced lower shadow, at least twice the size of the body. The important thing is that the upper shadow is practically nonexistent or very short. This is what makes it different.

What it really means is that buyers are gaining strength after a strong decline. Sellers push the price down, but then buyers recover it, leaving that very distinctive visual mark. It's as if the market is saying 'no, we won't go lower here.'

Where you see it appear is in those critical moments, especially at support levels or when the asset is in oversold territory. Both in Bitcoin and altcoins, this hammer candle repeatedly appears at inflection points.

Now, do not confuse this with the inverted hammer. The inverted one has a long shadow upward, not downward. It is basically the opposite, and appears at tops, not bottoms.

My advice after years of observing this: never trade based solely on a hammer candle. Always combine it with other indicators, volume, support levels, RSI, whatever you use. The pattern is a signal, but it needs confirmation from the movements that follow. Trading involves real risks, so make sure everything points in the same direction before taking a position.