Nepse charts-Hammer Candlestick patterns What does a hammer candlestick mean? Formations of Hammer candlesticks When the high and the close are the same, a bullish Hammer candlestick is formed. In contrast, when the open and high are the same, the red Hammer formation is considered less bullish, but still bullish. If the Hammer is green, it is considered a stronger formation than a red hammer because the bulls were able to reject the bears completely. We need to look Hammer candlestick at lower price (bottom area) in-order to make valid trade setup and to expect better result.