Hammer
A candlestick with a small body near the top of its range and a long lower wick, appearing after a decline.
How it is identified
Test: Lower Wick is at least twice the Body, Upper Wick is minimal, and the candle follows a decline
Unit
qualitative
In depth
The candle records that price fell substantially during the period and then recovered to close near the open, which practitioners read as buyers absorbing supply. The identical shape appearing after a rise is called a hanging man and is read the opposite way, which is a good illustration of how much of candlestick interpretation is supplied by context rather than by the candle. Single-candle patterns have the weakest evidence base in technical analysis, and a hammer on a low timeframe in a liquid stock carries no information. Described here as a shape; no directional claim is made.
Worked example
Open ₹486, low ₹468, high ₹489, close ₹484. The body is ₹2, the lower wick 486 - 468 = ₹18, nine times the body, and the upper wick ₹3. The shape qualifies; what follows is unknown.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Hammer” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.