Hammer
A deep intrabar sell-off fully bought back — demand announcing itself at the lows.
Single-Candle SignalsIntermediate 5 min read· Lesson 2 of 10 in Candlestick Patterns
Psychology
Sellers drove price sharply lower during the session; buyers absorbed everything and closed it near the top. That's real, committed demand at those prices — the more so after a sustained decline.
Recognition
Lower wick ≥ 2× the body; little/no upper wick; body (either color, green slightly stronger) at the top of the range. It must arrive AFTER a decline — the identical shape in an uptrend is a 'hanging man' with the opposite implication.
Confirmation
Confirm with a close above the hammer's high, ideally on expanding volume. Entry above that high, stop below the hammer's low — the pattern hands you a tight, structural risk definition.
Reliability
One of the better single candles at genuine support (roughly 55–60% follow-through in various studies WITH confirmation), mediocre in a vacuum. Volume on the hammer bar improves it.
Scanner integration
This exact pattern is the HAMMER named condition here — the chart above marks every real occurrence on the symbol's history (hover a dot to verify), and one click opens it in the Scanner or the Backtest panel to test it on any symbol yourself. That last step is the honest part most books skip.