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.
Scan the whole market free →Related terms
Get daily signals & real-time alerts.
StockSetups scans ~12,300 US stocks & ETFs after every close and sorts every long setup into four ranked lanes — each with a trade plan — plus an always-on engine firing 35+ real-time intraday alerts. Free for 14 days, cancel in one click.
Start free — 14-day full access →