Hammer

A hammer forms when price drops sharply during the period, then recovers to close near its high. The lower wick should be at least twice the size of the body, and the upper wick very short or absent.

It tells a story: sellers pushed, buyers took back control. It carries weight when it appears at support, after a decline, and ideally on higher volume.

Its mirror at the top of a rally is called the hanging man and reads bearish. The colour of the body matters little; the context matters a lot.