JoymistaWhat Is a Hammer Candle?
A hammer is a candle with a small body at the top of its range and a long lower wick at least twice the body, appearing after a fall.
Explained
The long wick means sellers pushed price down and buyers brought it back near the open. The same shape after a rise is called a “hanging man” with a different meaning, so context decides the name.
Example
Example with made-up numbers after a fallOpen 100, close 101, high 101.2, low 97. The body is 1 and the lower wick 3 (97 to 100), three times the body, so it is a hammer.
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Open in JoymistaEducational content, not investment advice.