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Hammer

Hammer is a chart pattern in a candlestick chart that includes only one candlestick. The Hammer is usually located at the end of a downtrend and indicates a bullish reversal. The candlestick body is located in the upper part of the candlestick with a long lower wick and a short upper wick (or no upper wick at all). The candlestick is considered a hammer only when the candlestick appears in a downtrend, its body is located on the upper part of the stick, and the lower wick’s length is at least double the length of the upper wick.

A similar pattern in an uptrend is the hanging man that looks just like the hammer but indicates a bearish reversal.

Hammer



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