Hammer

A hammer is a single candle with a small body near the top and a long lower wick, appearing after a decline — a picture of sellers driving price down within the period and buyers rejecting those lows to close back near the open. This article explains the hammer's anatomy and the tug-of-war it records, the importance of its downtrend context, its relatives (the hanging man and inverted hammer), and why a hammer is a description needing confirmation, not a reversal signal on its own.