Inverted Hammer
Also known as: Inverted Hammer candle
Small body at the bottom with a long upper wick, after a downtrend. A first buyer attempt upward – a potentially bullish turn.
What it looks like
The upper wick is long, the lower one nearly absent, the body sits at the lower end of the range.
What it means
Buyers tested higher prices and were pushed back, but showed strength for the first time after the weakness.
How it is traded
Confirmation by a green follow-up candle is important (weaker on its own than the hammer); stop below the low.
Where & when – and the limits
Only meaningful after a downtrend. The same shape after an uptrend is the bearish Shooting Star.
Related patterns
Education, not investment advice. Candlestick patterns are hints, not guarantees – they need confirmation and context (trend, levels, volume). Always manage risk with stop-loss and position size.
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