candlestick patternBullish

Hammer pattern

A Hammer is a single-candle bullish reversal with a small body near the top and a long lower wick at least twice the body. It shows that sellers pushed price down but buyers reclaimed control by the close — a sign a downtrend may be exhausting.

Historical performance

Hammer historical win-rate

Follow-through rate — how often price moved in the predicted direction within each window — across 570 historical occurrences on 20+ exchanges. Computed June 2026.

Hammer: historical follow-through win-rate by horizon (n = 570).
HorizonHistorical win-rate
1 hour29%
4 hours28%
24 hours30%
7 days31%
Sample size570 occurrences

This is a historical follow-through rate, not a trade simulation, and does not guarantee future results. See methodology →

How the hammer pattern forms

It forms after a decline: price sells off sharply within the candle, then rallies to close near the open, leaving a long lower shadow and little or no upper wick. Colour matters less than the shape, though a green hammer is marginally stronger.

How traders use the hammer pattern

Traders look for confirmation — a green candle or a close above the hammer’s high — before going long, with a stop below the wick. It works best at established support after a clear down-move.

CryptoPatterns’ scanner detects the hammer live across 20+ exchanges and every timeframe, tagging each occurrence with the historical win-rate above so you can weigh it in context. See how the scanner works →

FAQ

Hammer — common questions

What does a hammer candlestick mean?

A hammer means buyers rejected lower prices within the candle, hinting at a potential bottom. It is a reversal signal that gains strength at support and with confirmation on the next candle.

What is the difference between a hammer and a hanging man?

They look identical — small body, long lower wick — but context flips the meaning: a hammer appears after a downtrend (bullish), while a hanging man appears after an uptrend (bearish).

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