Hammer
Volume Price Analysis glossary · Volume Price Analysis
Definition
A candlestick with a small body near the high and a long lower wick; signals strength (rejected lower prices).
Hammer in plain English
First, the basics: a candlestick is just a little bar on a price chart that shows what happened during one slice of time. It has a fat middle (the "body," the gap between where price opened and closed) and thin lines sticking out (the "wicks," showing the highest and lowest prices touched). A Hammer has a small body up near the top and a long wick hanging down below, which means sellers shoved the price way down but buyers rushed in and hauled it back up before the candle ended. Picture a beach ball someone tries to hold underwater: it pops right back to the surface. That snap-back tells you buyers are strong and the price may be about to rise.
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