A hammer candlestick (small body, long lower wick, little/no upper wick) forming at a key support level signals strong buying pressure absorbing selling. The confluence of pattern + level creates high-conviction long entries.
Indicators Used
Hammer PatternPivot Points
Rules
📈 Long Entry
- Downtrend or pullback into support level (pivot, prior swing low, round number)
- Hammer forms: lower wick ≥ 2× body length, upper wick ≤ 0.5× body
- Hammer closes at support or very close to it
- Enter long on break of hammer's high (confirmation candle)
- Stop: below the hammer's low (tight stop)
- Target: nearest resistance, or 2.5R minimum
2× body
Wick Min
2.5:1
R:R
💡 Pro Tip
A hammer without a confluent level is just another candle. A hammer AT a previously-tested support with clear prior rejection is a high-quality entry. Never trade hammers in isolation. The level does most of the work.