Hammer Candlestick Practice
A hammer is a single candle that tells a story: sellers pushed price down hard, then buyers dragged it all the way back by the close. Train to read that long lower wick in context.
A hammer has a small real body near the top of the range and a long lower wick at least twice the body, with little or no upper wick. It appears after a decline and hints that buyers stepped in at the lows. Colour matters less than shape, though a green hammer is marginally stronger.
How to spot it
- ✓ A downtrend or pullback precedes the candle.
- ✓ The real body is small and sits in the upper third of the range.
- ✓ The lower wick is at least twice the height of the body.
- ✓ The upper wick is tiny or absent.
- ✓ Bonus confirmation: the next candle closes above the hammer’s high.
⚠️ Common mistake
A hammer-shaped candle in the middle of a range or near the top is not a hammer — same shape, wrong location. Without a prior decline for buyers to reject, the long wick means little.
FAQ
What is the difference between a hammer and a hanging man?
They are the same shape. A hammer appears after a downtrend (bullish); a hanging man appears after an uptrend (bearish). Location is everything.
Does the wick length really matter?
Yes — the long lower wick is the whole signal. It shows price was rejected at the lows. A short wick is just a small candle. This page is practice, not advice.