How to Read a Hammer Candlestick
A small body near the top of the range with a long lower wick -- one of the most recognized bullish reversal signals.
CANDLESTICK PATTERNS
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1-candle pattern · Bullish reversal
A hammer has a small body near the top of the candle’s range, a lower wick at least roughly twice the length of the body, and little or no upper wick, appearing after a downtrend. It shows sellers pushed price well below the open during the session, but buyers stepped in hard enough to close the period back near where it started.
The shape matters more than the color of the body — a bullish or bearish hammer both send the same message. What separates a reliable hammer from noise is usually the wick-to-body ratio (the longer the lower wick relative to the body, the more decisive the rejection looks) and whether the next candle actually confirms the move higher; a hammer that isn’t followed through often just gets revisited and broken.
Related patterns
- How to Read a Hanging Man Candlestick
- How to Read an Inverted Hammer
- How to Read a Dragonfly Doji
- How to Read a Bullish Engulfing Pattern
This article is educational only and isn’t a recommendation to trade any particular instrument or pattern — no candlestick pattern works in isolation. See the full candlestick guide for how patterns like this one fit into a broader approach.