Hammer
Long lower wick, small body up top
What it is
A candle with a small body near its high and a lower wick at least twice the body. Price was pushed well down during the period and closed back near where it opened.
What it may suggest
Sellers tried lower and failed. At support this may suggest demand stepped in.
Where it fails
Meaningless in isolation and unreliable against a strong downtrend, where hammers print repeatedly on the way down. The level it forms at matters more than the shape.
Also called bullish hammer.
More candlesticks
- Shooting starLong upper wick, small body at the bottom
- Bullish engulfingAn up candle that swallows the previous down candle
- Bearish engulfingA down candle that swallows the previous up candle
- MarubozuFull body, almost no wicks: one-sided period
- Spinning topSmall body, wicks both sides
- Morning starDown candle, small pause, up candle
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