hammers are Not picky about placement although I find lower third of tank is best. Light and water flow play a higher importance however with hammer. Avoid extremely bright locations or areas of very high current, and avoid areas that are too dark or with currents that are too low. Fast currents risk damaging the soft, fleshy polyps (and getting an infection). Bright lights will cause bleaching. Insufficient lighting will cause the poor coral to wither away and starve to death.
Hammer corals only require a moderate amount of light for photosynthesis and can grow well in the intermediate regions of your tank. Just about any reef LED lighting should be sufficient for most tanks. Reduce white light intensity and get it off the sand bed which sand can irritate it.
The polyps should sway in the current, but not sustain so much pressure they are constantly bent over their skeleton. Too much flow will tear the polyps (worst case) and cause the polyps do not extend in the first place (best case). So, don’t give them too much flow.