← All patterns · Deutsche Version
Hammer Candlestick: definition and measured success rate
Data as of 31.07.2026 · back-test since 09/2020
A hammer is a single-candle reversal signal: price sells off sharply during the session but closes near its high, leaving a long lower shadow and a small body. Buyers absorbed the entire intraday sell-off before the close. In chartval's back-test, it worked in 55 of 100 comparable cases (4,086 occurrences).
How does a hammer candlestick form?
During a decline, sellers push price far below the open. Instead of closing weak, the market recovers the full range — the fingerprint of real buying interest at that level. Context decides the quality: a hammer at a tested support level after a decline carries the most weight.
How reliable is the hammer candlestick?
In chartval's historical back-test across 274 stocks, ETFs and cryptocurrencies, the hammer candlestick reached a 5 percent move in the signal direction before a 5 percent counter-move in 55 of 100 cases (4,086 occurrences evaluated since 09/2020; data as of 31.07.2026). Past statistics are not a reliable indicator of future results.
Measurement: a case counts as a hit when price moved 5 percent in the signal direction before moving 5 percent against it, based on closing prices, within a maximum of 120 candles after the trigger.
How chartval detects the pattern
chartval requires a long lower shadow relative to the body, a close near the session high, a preceding decline and nearby support, and grades the candle by these proportions. chartval scans 274 stocks, ETFs and cryptocurrencies daily; every signal names an entry, a target and the level at which the setup is invalidated.
See where this pattern is forming right now
Open the app →Note: All content on chartval is technical-analysis information, not investment advice and not a recommendation to buy or sell. Trading securities and crypto assets involves risk up to total loss. Past pattern statistics are not a reliable indicator of future results.