A small body near the top of the range with a long lower wick, appearing after a decline — buyers rejected lower prices.
The long lower shadow shows sellers drove price down during the session but buyers pushed it back up to close near the open. It must appear after a downtrend to count as a hammer.
It signals potential bullish reversal — the down-move was rejected. Traders often wait for the next candle to close higher as confirmation before buying.
Body is small and sits in the upper third of the range; the lower wick is at least about twice the body; little or no upper wick; it follows a move down.
Never trade a single candle in isolation. It only carries weight with context — location at a key level, the prevailing trend, and confirmation from the next candle or from volume. On its own it is a hint, not a signal.
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