Hammer
A single candle with a small body and a long lower wick, signaling that buyers rejected lower prices — a potential bullish reversal.
A hammer appears after a decline. Price sells off hard intraday, then buyers drive it back up to close near the open, leaving a long lower shadow at least twice the body. It shows sellers tried to push lower and failed.
A hammer is a clue, not a signal on its own — traders look for confirmation the next session (a higher close) and stronger context, like a hammer at a support level or the bottom of a pullback.
On StockSetups
StockSetups uses candlestick patterns like the hammer as confirmations on top of chart-pattern setups, tagging each signal's candle bias (bullish, bearish or neutral) rather than treating candles as standalone trades.
Related terms
See hammer on tonight's board.
StockSetups scans the whole US market after the close and draws the patterns, levels and indicators on every chart.
Start free — 7-day full access →