1-candle patternPossible bullish signal
Hammer candlestick pattern
Price falls, buyers push it back up. A long lower wick shows the rejection of lower prices.
Illustrative candles, not a live chart. Each candle covers one chart interval.
Spot it in 3 steps
What to check next
A later candle closing above the hammer’s high adds bullish confirmation. It can still fail.
Common mistake
The same shape after a rise is a hanging man, not a hammer. A long wick alone is not a buy signal.
Definition reference: Investopedia · Hammer