Inverted hammer: What is an Inverted

What is an Inverted Hammer ? It is a candlestick pattern, which is represented as an inverse hammer , with the body of the candlestick being small and the upper wick being more than two times as large as the body of the candlestick itself, with little to no wick at the bottom. The Inverted Hammer candlestick pattern, also known as the inverted hammer candlestick formation, is a bullish reversal that forms at the bottom of downtrends. As the name implies, it has the appearance of an inverted hammer — a small body at the lower end and a long upper shadow. It shows that the buyers are gaining momentum against the sellers and might soon push the price higher, potentially signaling a bullish reversal. The pattern is widely used by traders to identify the beginning of ... Learn how to identify and trade the inverted hammer pattern, a bullish reversal formation that occurs at the end of a downtrend. See examples, pros and cons, and tips for using RSI and Fibonacci levels. Inverted Hammer is a bullish reversal pattern that occurs when the price opens low and closes near the opening level after a high. Learn how to identify, trade and invest using this pattern with examples and strategies.