The hammer
Candles 101
Rejection at the lows
Small body on top, wick 2x+ below, AFTER a decline. Sellers flushed it; buyers bought everything and closed near the highs. Confirmation next bar makes it tradeable.
Check yourself
What's required for a valid hammer?
- A prior downtrend + long lower wick correct
- Green color
- High volume only
No decline, no hammer. The pattern IS the rejection of a flush. Color matters less than shape and location.
Learn this properly
This term has a full interactive lesson in Wick — the chart, the pattern to tap, and a live practice terminal to try it on. Free to start.
Open the lesson