Bearish Hammer Candlestick Pattern Explained
What Is a Bearish Hammer?
A bearish hammer is a single-candle reversal pattern seen at market tops, hinting at weakening buying pressure and a possible downtrend
Key Structure
Small body near the bottom, long upper shadow, and little or no lower shadow — showing rejection of higher prices
Where Does It Appear?
It forms after a price rally or during an uptrend, often near resistance levels
Click Here Market Psychology
Buyers push prices higher, but sellers take control and force a close near the low, signaling exhaustion in bullish momentum
Confirmation Matters
Traders usually wait for the next candle to close below the bearish hammer body to confirm a downward reversal
Bearish Hammer vs Similar Patterns
Inverted Hammer, Hanging Man, and Shooting Star look similar but differ based on trend direction and market context
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