What is the Inverted Hammer
The Inverted Hammer candlestick pattern occurs at the end of a downtrend and signifies a bullish reversal. This pattern consists of only one candlestick with a true body and shadow.
Understanding the Inverted Hammer
The Inverted Hammer consists of a single candlestick and occurs at the end of a downtrend.
The real body is short and is located at the end of the candlestick. This candlestick also has a long upper shadow that makes up the majority of the candle.
This candlestick pattern is called Inverted Hammer because it looks the opposite of the Hammer pattern.