Back to Hammer Pattern
Inverted Hammer
BullishVisual Example
Quick Summary
Shape
Small body at bottom, long upper shadow (2x+ body), little/no lower shadow.
Common Trap
Confusing with shooting star (which appears after uptrends).
Context Rule
Appears after downtrends at support; needs bullish follow-through to confirm.
When It Fails
- •Not at established support level
- •In middle of downtrend (more downside likely)
- •No bullish confirmation candle follows
- •Low volume during upper shadow probe
When It Works
- •At strong support after sustained decline
- •Upper shadow shows buying interest emerging
- •Next candle gaps up or closes strongly bullish
- •Volume increases on confirmation candle
Key Concepts
Understanding these methodology concepts will help you evaluate Inverted Hammer setups more effectively:
Training Note: Pattern variants are educational classifications. Real-world price action rarely matches textbook definitions exactly. Always evaluate patterns in context of regime, location, and volume. This is not trading advice.