Hammer
BullishAfter a decline, price stabbed lower then closed back near the top — a sign buyers stepped in below
Textbook shape
How to read it
In a decline: a long lower shadow (2x+ the body) with a small body near the top. Sellers pushed price down intraday, but most of it was bought back by the close — one day's record of demand at that level.
Watch whether the next bar closes above the hammer's body (confirmation). The same shape after a rise is called a hanging man — the opposite warning.
Real example
US stockPTONDaily
Completed 2020-03-13
CryptoETH-USDDaily
Completed 2017-05-09
A window SQMATE's detectors actually flagged in past bars. It records a day that worked out — the same shape doesn't always resolve the same way.
On SQMATE
No more eyeballing charts
You don't have to flip through charts hunting for shapes. Signal watch pings your browser the moment a condition is met, patterns on your watchlist arrive by email, and the screener lists every symbol that matched today.
SQMATE draws the lines
Support lines, trendlines, channels — the lines you need to read a pattern are drawn for you, so no time goes into drawing.
Patterns aren't the whole story
The same shape doesn't always resolve the same way. It's safer to read it together with candles, volume, and market context — news, catalysts, flows.