Bullish Reversal◐ Heuristic
◆ The PatternLong lower shadow, small body at top — buyers reclaimed
The Hammer has a small body at the top and a long lower shadow (≥2× body length). Sellers pushed price down during the session, but buyers pulled it back up. At a support level or downtrend base, it signals bullish reversal.
Lower shadow ≥ 2× body length, little or no upper shadow
The "Hanging Man" has the same shape but appears at tops — same candle, opposite meaning depending on context.
// Hammer vs. Hanging Man
Key insight: Color matters less than shape — a green hammer is slightly more bullish, but a red hammer at support is still a valid reversal signal.
Pattern bridge: A long lower shadow rejected by buyers — the distribution of the session is heavily skewed. In ML, ReLU similarly rejects negative values, keeping only the upside.