HOW HAMMER CANDLE ACTUALLY WORK IN PREMIUMS ?
A hammer candle in an option premium chart signals a potential reversal after a decline. It shows that sellers pushed the premium down, but buyers stepped in and pulled it back up, forming a long lower wick and small body. When this happens near key support, an order block, or EMA, it suggests that the premium may bounce. It's more reliable with high volume and confirmation from the next candle closing above the hammer’s high. In simple terms, a hammer in premium charts indicates buyer strength and can be used as a low-risk entry trigger.