What is Hammer?
Chart PatternsBeginner
A hammer is a bullish candlestick pattern with a small body at the top and a long lower wick, at least twice the body's length. It appears at the bottom of a downtrend and signals potential reversal. The long wick shows sellers pushed price down, but buyers fought back to close near the high.
Related terms: Doji Shooting Star Candlestick Reversal