Trading glossary · candles

hammer

A candle shaped like a hammer: a small top and a long line hanging below, showing price dropped and then bounced back up.

The fuller meaning

A single-candle pattern after a decline: a small body near the top, a lower wick at least twice the body and little or no upper wick. It shows sellers pushed down hard but buyers recovered before the close; it hints the fall may be slowing, and the idea is wrong on a close below its low.

hammer.

hammer

The fuller meaning

Related words