Hammer/Inverse Hammer Indicator

The strategy looks for two specific "exhaustion" candles that suggest a trend is losing steam:

• The Hammer (Bullish Reversal): Occurs at the bottom of a downtrend. It has a small body at the top and a long lower wick (at least twice the size of the body), signaling that sellers pushed the price down, but buyers stepped in to reclaim the level.

• The Inverted Hammer / Inverse (Bearish Reversal): When appearing after an uptrend, this indicates that buyers tried to push higher, but were met with significant selling pressure, leaving a long upper wick.