From selling pressure to buying power — the hammer shows where bulls fight back
Hammer Candle – Key Points:
• Small body at top
• Long lower wick (≥2× body)
• Little/no upper wick
• Appears after downtrend
• Shows buying pressure comeback
• Needs next candle confirmation
Small real body – The candle’s body is small and near the top of the range.
2. Long lower shadow – The lower wick is at least 2x longer than the body.
3. Little to no upper shadow – Top wick is very small or missing.
4. Appears after a downtrend – Works best as a reversal signal from bearish to bullish.
5. Color can be green or red – Green (bullish) hammers are stronger, but red ones can still indicate reversal.
6. Shows rejection of lower prices – Sellers pushed price down, but buyers pulled it back before close.
7. Needs confirmation – Next candle closing above hammer’s high adds reliability.