Hammer
A candle with a small body near the top and a long lower wick, appearing after a fall and hinting that…
In plain English
A candle with a small body near the top and a long lower wick, appearing after a fall and hinting that buyers are fighting back.
A hammer forms after a decline. Sellers drive price well down during the session, then buyers hammer it back up to close near the open. The long lower wick is the evidence of that rejection.
It is a possible bottoming signal, stronger at support and with a bullish candle the next day. The same shape after a rise is a hanging man.
Keep this word for good
Your free Private Swap Lounge saves the terms you’ve learned and quizzes you on them. Portal under construction. Expected delivery date is December 01, 2026.