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Japanese name: kanazuchi
Forecast: bullish reversal
Trend prior to the pattern: downtrend
Opposite pattern: Hanging Man
Construction:
- white or black candle with a small body
- no upper shadow or the shadow cannot be longer than the body
- lower shadow between two to three times longer than the body
- if the gap is created at the opening or at the closing, it makes the signal stronger
- appears as a long line
Although the pattern belongs to the bullish reversal patterns group, it very often happens that is merely a brief pause on the falling market, after which the price does move even lower. The Hammer works best in a long downtrend, and its appearance after the declines lasting only two or three candles usually does not matter. The strong meaning has its occurrence within a support zone. As every one-line pattern, the Hammer requires a confirmation within the next two or three candles, during which the closing prices should be higher than the closing price of the pattern's body.
The Hammer can also occur, for example, as a second line of the Bullish Harami pattern and as a first and second line of the Tweezers Bottom pattern.
It was already mentioned that the Hammer's lower shadow height cannot exceed more than three times the body's height. If a lower shadow exceeds that height, we deal with the Takuri Line pattern. In other words, the Takuri Line is like the Hammer but with a very long lower shadow.
Hammer statistics
Below you can find some Hammer pattern statistics calculated by CandleScanner software. To see more detailed statistics, for other markets and periodicity try our CandleScanner software. Prices start at only $10, and you can see more detailed statistics, for other markets and periodicity. Click here to find out more!
Scanner settings: daily stocks
Group: S&P500
Number of symbols: 502
Date range: 7/1/1995 - 6/30/2015
Time interval: daily candles
Total number of candlesticks: 2,236,421
Number of occurrences (Hammer): 9,944
Number of occurrences (all candlestick patterns): 638,570
% of occurrences (Hammer): 1.56 %
Average frequency: 224.9
Efficiency statistics (5 candlesticks testing period)
Efficiency | NO DATA | FALSE | LOW | MEDIUM | HIGH |
---|---|---|---|---|---|
Number of Occurrences |
8 | 2,128 | 2,488 | 1,827 | 3,493 |
% of Occurrences |
0.08 % | 21.32 % | 25.02 % | 18.37 % | 35.21 % |
Efficiency | NO DATA | FALSE | LOW | MEDIUM | HIGH |
---|---|---|---|---|---|
Number of Occurrences |
13 | 2,054 | 1,964 | 1,526 | 4,387 |
% of Occurrences |
0.13 % | 20.53 % | 19.75 % | 15.35 % | 44.24 % |
Occurrences Statistics | 5 candlesticks testing period (HIGH efficiency) |
10 candlesticks testing period (HIGH efficiency) |
||||
---|---|---|---|---|---|---|
Symbol | Number of Occurrences |
Average Frequency |
Number of Occurrences |
% of Occurrences |
Number of Occurrences |
% of Occurrences |
AAPL | 32 | 157.3 | 22 | 68.74 % | 25 | 78.12 % |
HRS | 28 | 179.8 | 12 | 42.85 % | 18 | 64.28 % |
KSS | 24 | 209.8 | 12 | 50.00 % | 15 | 62.51 % |
ADI | 29 | 173.6 | 16 | 55.18 % | 18 | 62.08 % |
BWA | 25 | 201.4 | 11 | 48.00 % | 14 | 60.00 % |
HON | 29 | 173.6 | 15 | 51.73 % | 17 | 58.63 % |
XLNX | 29 | 173.6 | 15 | 51.72 % | 17 | 58.62 % |
COP | 29 | 173.6 | 16 | 55.17 % | 17 | 58.62 % |
NUE | 31 | 162.4 | 16 | 51.61 % | 18 | 58.06 % |
CCE | 26 | 193.6 | 14 | 53.85 % | 15 | 57.70 % |
Occurrences Statistics | 5 candlesticks testing period (FALSE efficiency) |
10 candlesticks testing period (FALSE efficiency) |
||||
---|---|---|---|---|---|---|
Symbol | Number of Occurrences |
Average Frequency |
Number of Occurrences |
% of Occurrences |
Number of Occurrences |
% of Occurrences |
WDC | 27 | 186.4 | 12 | 44.44 % | 12 | 44.44 % |
FOSL | 24 | 209.7 | 10 | 41.67 % | 10 | 41.67 % |
VRTX | 24 | 209.7 | 10 | 41.67 % | 10 | 41.67 % |
GLW | 27 | 186.4 | 11 | 40.74 % | 11 | 40.74 % |
GPS | 25 | 201.4 | 10 | 40.00 % | 10 | 40.00 % |
ORLY | 26 | 193.6 | 10 | 38.46 % | 10 | 38.46 % |
TSCO | 29 | 172.5 | 11 | 37.93 % | 11 | 37.93 % |
PVH | 24 | 209.8 | 9 | 37.50 % | 9 | 37.50 % |
VLO | 24 | 209.8 | 9 | 37.50 % | 9 | 37.50 % |
CHK | 30 | 167.8 | 11 | 36.67 % | 11 | 36.67 % |
Scanner settings: daily stocks
Group: S&P500
Number of symbols: 502
Date range: 7/1/2010 - 6/30/2015
Time interval: daily candles
Total number of candlesticks: 614,034
Number of occurrences (Hammer): 2,400
Number of occurrences (all candlestick patterns): 166,328
% of occurrences (Hammer): 1.44 %
Average frequency: 255.8
Efficiency statistics (5 candlesticks testing period)
Efficiency | NO DATA | FALSE | LOW | MEDIUM | HIGH |
---|---|---|---|---|---|
Number of Occurrences |
8 | 385 | 730 | 531 | 746 |
% of Occurrences |
0.33 % | 15.71 % | 30.42 % | 22.12 % | 31.42 % |
Efficiency | NO DATA | FALSE | LOW | MEDIUM | HIGH |
---|---|---|---|---|---|
Number of Occurrences |
13 | 357 | 539 | 449 | 1,042 |
% of Occurrences |
0.54 % | 14.34 % | 22.46 % | 18.71 % | 43.95 % |
Occurrences Statistics | 5 candlesticks testing period (HIGH efficiency) |
10 candlesticks testing period (HIGH efficiency) |
||||
---|---|---|---|---|---|---|
Symbol | Number of Occurrences |
Average Frequency |
Number of Occurrences |
% of Occurrences |
Number of Occurrences |
% of Occurrences |
BWA | 9 | 139.8 | 5 | 66.67 % | 6 | 77.78 % |
HAR | 8 | 157.3 | 5 | 62.50 % | 6 | 75.00 % |
TIF | 10 | 125.8 | 4 | 40.00 % | 7 | 70.00 % |
ETN | 9 | 139.8 | 6 | 66.67 % | 6 | 66.67 % |
HSP | 9 | 139.8 | 4 | 44.45 % | 6 | 66.67 % |
NBL | 8 | 157.3 | 3 | 50.00 % | 4 | 62.50 % |
NLSN | 8 | 139.1 | 3 | 37.50 % | 5 | 62.50 % |
WYNN | 8 | 157.3 | 5 | 62.50 % | 5 | 62.50 % |
GM | 10 | 116.0 | 6 | 60.00 % | 6 | 60.00 % |
NTAP | 10 | 125.8 | 3 | 30.00 % | 6 | 60.00 % |
Occurrences Statistics | 5 candlesticks testing period (FALSE efficiency) |
10 candlesticks testing period (FALSE efficiency) |
||||
---|---|---|---|---|---|---|
Symbol | Number of Occurrences |
Average Frequency |
Number of Occurrences |
% of Occurrences |
Number of Occurrences |
% of Occurrences |
PEG | 8 | 157.3 | 4 | 50.00 % | 4 | 50.00 % |
CHK | 8 | 157.3 | 3 | 37.50 % | 3 | 37.50 % |
MLM | 8 | 157.3 | 3 | 37.50 % | 3 | 37.50 % |
CAT | 9 | 139.8 | 3 | 33.33 % | 3 | 33.33 % |
DE | 9 | 139.8 | 3 | 33.33 % | 3 | 33.33 % |
HIG | 9 | 139.8 | 3 | 33.33 % | 3 | 33.33 % |
MPC | 9 | 112.2 | 3 | 33.33 % | 3 | 33.33 % |
AEE | 8 | 157.3 | 2 | 25.00 % | 2 | 25.00 % |
APD | 8 | 157.3 | 2 | 25.00 % | 2 | 25.00 % |
BLL | 8 | 157.3 | 2 | 25.00 % | 2 | 25.00 % |