Charts & technicals
What is Hammer?
Also called: Hammer candlestick, Shooting star
Hinglish mein padhein: Hammer candlestick kya hota hai?
A hammer is a candle with a small body near the top and a long lower wick, appearing after a decline — a possible bullish reversal.
It shows sellers pushed the price down but buyers drove it back up by the close. Its bearish mirror after a rise is the shooting star.
Confirmation comes from a strong next session; without it, the hammer is only a hint.
Related terms
- Candlestick chartA candlestick shows a period's open, high, low and close. The body spans open to close; the wicks show the high and low.
- DojiA doji is a candle whose open and close are almost equal, signalling indecision between buyers and sellers.
- Engulfing patternAn engulfing pattern is two candles where the second body completely covers the first, in the opposite colour — a common reversal signal.