Single-candle pattern · bullish bias
Hammer candlestick pattern
A hammer is a single candle with a small body near the top of its range and a long lower wick, appearing after a decline. It shows sellers pushed price down hard during the session but buyers drove it back up.
How to identify it
- A small real body at or near the top of the candle's range.
- A lower wick at least about twice the length of the body.
- Little or no upper wick.
- It forms after a clear move down. The body colour matters less than the shape.
Where it matters: Appears after a decline, near a low.
What it means
The long lower wick records a rejection of lower prices. On its own it shows buyers defended the session; it does not yet show a trend change.
What confirms it
A following candle that closes above the hammer's high is the usual confirmation.
What invalidates it
A close below the hammer's low means the rejection failed.
Common mistakes
- Treating a hammer in the middle of a range or an uptrend as bullish. Location is essential.
- Acting on the hammer before the next candle confirms it.
- Ignoring the size of the wick relative to recent candles.
Frequently asked questions
Is a hammer candle bullish?
It has a bullish bias when it appears after a decline, but it needs confirmation from the next candle.
Does a hammer have to be green?
No. A green body is slightly stronger, but a red hammer with the same shape still shows the same rejection.
What is the difference between a hammer and a hanging man?
They look identical. A hammer appears after a decline; a hanging man appears after an advance.
Related candlestick patterns
Educational content only, not financial advice. Chart patterns describe probabilities, not certainties, and every pattern can fail. See our disclaimer.