The Hammer (Hammer) is a single-candle bullish reversal pattern that forms at the bottom of a downtrend. It has a small body in the upper part of the candle's range and a long lower shadow at least twice the length of the body, with no upper shadow or a very small one. Its shape looks like a hammer: a short head and a long handle.
01
PATTERN ID
SignalBullish ▲
Reliability★★★★☆
Win Rate62%
Expected move+3–8%
TimeframeDaily / 4 hours
ConfirmationRequired
The short answer
What is a Hammer candle?
The Hammer (Hammer) is a single-candle bullish reversal pattern that forms at the bottom of a downtrend. It has a small body in the upper part of the candle's range and a long lower shadow at least twice the length of the body, with no upper shadow or a very small one.
How do you recognize a Hammer candle?
Appears after a sustained downtrend of 3 sessions or more. The body sits in the upper third of the full candle range, and the lower shadow is at least 2–3× the body length.
Is the Hammer candle a bullish or bearish signal?
It belongs to the bullish reversal patterns, is made of a single candle, and confirmation is required. Its reference success rate is 62%. Did it show up in the last session? The list of symbols that formed it on the latest completed daily candle is on this page, and it updates after every close. Which symbols formed it? →
Pattern illustration
Prior downtrend + a hammer with a long lower shadow
How to identify the pattern
Step-by-step checks
Appears after a sustained downtrend of 3 sessions or more
The body sits in the upper third of the full candle range
Lower shadow at least 2–3× the body length
Upper shadow absent or very small (≤10% of the body)
Body color is secondary: green is stronger than red, but both count
Trading psychology
The power struggle between buyers and sellers
After a sharp drop, sellers push price down hard during the session, but buyers step in aggressively and bring it back near the open. The long lower shadow shows a failed attack by the bears. Buyers defended the low and took back control.
Outlook and confirmation
Entry conditions and expected price move
Needs confirmation in the next session
When confirmed by a bullish session the next day, expect a rise of 3–8% over 5–10 days. Reliability grows with above-average volume and when the pattern appears at a key support level.
Ideal setting for the pattern
At support levels
Typical timeframe: daily / 4 hours
Where to find it on the platform
Hammer on the latest completed daily candle
Candle of 13 Oct 2026 · list updated 13 Oct 2026 23:10 UTC
This pattern did not appear on any symbol in the platform's list on the 13 October 2026 candle.
After each session closes, we classify the daily candle of SPY by its shape. When it takes this shape, its name appears there along with its body and shadow ratios.
Shows the daily-timeframe candles for any symbol on the platform's list. You identify the pattern by eye: the terminal does not name it.
How it is traded in practice
Entry does not come on the hammer candle itself but after its confirmation: a following close above its high is the trigger. The stop loss sits just below its lower shadow, because that low is the whole thesis. Whoever defended it once is expected to defend it again, and breaking it cancels the signal. The first target is the nearest visible resistance, since this is a bounce pattern and not a guaranteed start of a trend.
Common mistake
Buying every hammer wherever it shows up: a hammer in the middle of a sideways range is noise with no meaning, and all its value comes from its location, the low of an extended decline at visible support. The second mistake is ignoring volume: a hammer on weak volume is a defense with few buyers behind it, while a hammer on heavy volume at support is the stronger version.
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