Inverted Hammer candlestick pattern
An inverted hammer looks like a hammer flipped upside down: a small body at the bottom and a long upper wick. It appears after a fall and hints that buyers are starting to test higher prices.
How to spot a Inverted Hammer
- A small body near the bottom of the candle.
- A long upper wick, at least about twice the body.
- Little or no lower wick.
- It forms after a decline. The same shape after a rise is a shooting star.
Memory tip: Upside-down hammer, still after a fall.
What it usually means
Buyers pushed price up but could not hold it, yet the attempt itself is a first sign that selling pressure is easing.
What traders wait for
This one is weaker than a hammer on its own. Traders typically wait for the next candle to close higher before trusting it.
Common mistakes
- Confusing it with a shooting star. The shape is the same, and only the trend before it tells them apart.
- Acting on it without confirmation.
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Play Candlr freeQuestions people ask
What is a Inverted Hammer candlestick?
An inverted hammer looks like a hammer flipped upside down: a small body at the bottom and a long upper wick. It appears after a fall and hints that buyers are starting to test higher prices.
How do you spot a Inverted Hammer?
A small body near the bottom of the candle. A long upper wick, at least about twice the body. Little or no lower wick. It forms after a decline. The same shape after a rise is a shooting star.
Is a Inverted Hammer bullish or bearish?
It is usually read as bullish (a possible move up). Buyers pushed price up but could not hold it, yet the attempt itself is a first sign that selling pressure is easing.
Is a Inverted Hammer reliable on its own?
No pattern is a guarantee. This one is weaker than a hammer on its own. Traders typically wait for the next candle to close higher before trusting it. Always decide your risk before you act, and treat patterns as clues, not predictions.
Related patterns
- Doji Open and close are almost equal, so buyers and sellers fought to a draw. It signals indecision.
- Hammer A small body with a long lower wick after a drop. Sellers pushed price down but buyers pulled it back up.
- Hanging Man Looks exactly like a hammer, but it appears after a rise. Sellers managed a big dip, a warning sign.
- Shooting Star A small body with a long upper wick after a rise. Buyers pushed price up but sellers rejected it.
Candlr is educational. Candlestick patterns describe what price did, they do not predict what it will do next, and nothing here is financial advice. Trading involves a high risk of loss.