Inverted Hammer candlestick pattern

Inverted Hammer

Inverted Hammer is a bullish trend reversal candlestick pattern made up of 2 bars.
How to Identify:

• The 1st bar is black and continues the downtrend;
   
• The 2nd bar has small body and located in the bottom of the price range;
   
• The 2nd bar has a long upper shadow and does not have lower shadow;

We use our proprietary data-mining algorithm to capture specific price movement and pattern performance.
Under certain circumstances, a Bullish pattern can also perform as a Bearish pattern, and a reversal pattern can be changed into a continuation pattern.

If you want to find out the performance of this pattern in real market, not in theory, our data mining results are your must have reference.

• Inverted Hammer Pattern data mining result (2014 Daily, Bearish continuation)

• Inverted Hammer Pattern data mining result (2014 Daily, Bullish reversal)

The following pictures are taken from our Candlestick Pattern Indicator (Thinorswim version).