Skip to main content

Inverted Hammer

Bullish Candlestick Pattern

Tobi Frenzen
Author
Tobi Frenzen
Published
October 28, 2024
Author
Tobi Frenzen
Published
Oct 28, 2024
Inverted Hammer Candlestick Pattern
Inverted Hammer - Bullish Single Candlestick Pattern

Pattern Details

Inverted Hammer

Bias

Bullish

Type

Single Candlestick Pattern

Description

Small body with a long upper wick at the bottom of a downtrend.

Meaning

Showing rejection of higher prices. Can signal bullish reversal if confirmed by subsequent buying pressure.

What is the Inverted Hammer pattern?

The Inverted Hammer forms at the bottom of a downtrend, with a small body and long upper wick. This pattern shows that buyers attempted to push prices higher, but sellers ultimately brought them back down by the close. The Inverted Hammer is an early sign of buyer interest, hinting that a trend reversal may be underway if subsequent candles confirm the shift.

Interpreting the Inverted Hammer helps traders understand where sentiment may be shifting from bearish to bullish, often marking the beginning of a recovery. Recognizing these patterns takes practice and familiarity with market conditions. With The Chart Guys’ resources, traders can deepen their understanding of such reversal signals and learn how to incorporate them effectively into their trading strategies.

Join The
Chart Guys!

To learn from other experienced traders and technical analysts, why not join our unique trading community? We can't wait to welcome you in our trading room to answer your questions and help you achieve your goals.

Follow Us On Social Media