Hammer
Small body at the top with a long lower wick (at least 2× the body). Looks like a hammer driving in a support level.
Clean view of the hammer in isolation.
After the downtrend, the pattern appears and price reverses higher.
Wait for a bullish close above the hammer's high. Higher volume on the hammer adds weight.
Bullish reversal at the BOTTOM of a downtrend. One of the most-traded reversal candles.
The psychology behind it
Bears were in control all session, then bulls stormed back and closed price near the high. Demand has overwhelmed supply.
Like every candlestick pattern, the Hammer is a probabilistic signal — not a guarantee. The strongest setups appear at clear support / resistance levels, with a directional bias from higher timeframes, and ideally with volume confirmation. Always combine candlestick reads with structure and trend context.
Related patterns
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