Technical analysis · Unit 2 · Candlestick patterns · Chapter 7

Hammer and hanging man: Same shape, different story

Why the same candle shape means a possible bottom after a fall and a warning after a rise: the hammer, hanging man and shooting star, with NSE examples.

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Same shape, different story

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The teaching chart from this chapter. The interactive chapter hides what happens next and asks you to call it.

Some candles have a small body at the top and a long lower wick, at least twice the size of the body. Sellers pushed price far down during the day, then buyers pushed it back up. What that means depends on where it appears.

What to look for

  • Hammer: this shape after a fall. Sellers had their chance to push lower and failed. A possible bottom.
  • Hanging man: the same shape after a rise. Sellers showed they could drag price down hard in one day, a first crack in the uptrend.
  • Shooting star: the shape flipped over. A long upper wick after a rise: buyers pushed up and were sent back down.

The trend before the candle and the length of the wick matter more than the body’s colour. A green hammer is only a little stronger than a red one.

Check yourself

The stock fell for two weeks. The last candle has a long lower wick and a small body near its high. What is it called?

  1. A hammer
  2. A hanging man
  3. A shooting star
Show the answer

A hammer. It looks just like a hanging man, but it comes after a fall, so it is a hammer. The long lower wick shows sellers pushed hard and buyers took it all back.

Key takeaway

The hammer at the bottom

After falling from about ₹630, sellers pushed the stock down to ₹533 on the last day. Buyers then lifted it back to close at ₹555. Sellers had their best chance to break it and failed. Price recovered over the next two weeks.

Many traders wait for the next day to close above the hammer’s high before trusting it, and keep a stop-loss just under its low.

Go deeper

Tested on 187 NSE stocks

How often these signals were followed by a rise on real NIFTY 200 charts, 2021–2025.

  • Hammer · higher after 12 days 60.7% of the time (any day: 55.3%)
  • Hanging man · higher after 12 days 54.3% of the time (any day: 55.3%)
  • Shooting star · higher after 12 days 54.7% of the time (any day: 55.3%)

Related guides

Practise Hammer and hanging man, free

Reading about it is step one. In MarketSeekho you see a real NSE chart with the future hidden, call Bull or Bhalu, say why, and get graded on your reasoning, not luck.

Start the chapter · 5 min →Play today’s chart

Common questions

What is Hammer and hanging man?

Some candles have a small body at the top and a long lower wick, at least twice the size of the body. Sellers pushed price far down during the day, then buyers pushed it back up. What that means depends on where it appears.Hammerafter a fallHanging manafter a riseShooting starafter a rise

What should I look for with Hammer and hanging man?

Hammer: this shape after a fall. Sellers had their chance to push lower and failed. A possible bottom. Hanging man: the same shape after a rise. Sellers showed they could drag price down hard in one day, a first crack in the uptrend. Shooting star: the shape flipped over. A long upper wick after a rise: buyers pushed up and were sent back down.

How can I practise reading Hammer and hanging man for free?

MarketSeekho has a free four-page chapter on Hammer and hanging man (learn, answer a question, spot it on a chart, then make a call) and daily real-chart practice graded on your reasoning. No sign-up or money needed.