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

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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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