Inverted Hammer Candlestick Top

The inverted hammer candlestick is a price formation that consists of a single candle with a long wick on its top.

Inverted hammer candlestick top. An inverted hammer candlestick pattern is typically found at the bottom of a down trending market. The day after an inverted hammer is detected usually tells whether prices will go lower or higher. Also there is a long upper shadow which should be at least twice the length of the real body. The open close and low are near the low of the pattern.

The inverted hammer is a type of candlestick pattern found after a downtrend and is usually taken to be a trend reversal signal. In technical analysis the inverted hammer candlestick pattern is the reverse of the hammer pattern. This usually means that the trend is about to reverse and either create a new downtrend temporary reversal or a minor pullback. With a long upper shadow it may be a warning of a potential change in price.

The pattern has one candle. Inverted hammer candlestick pattern. When the low and the open are the same a bullish inverted hammer candlestick is formed and it is considered a stronger bullish sign than when the low and close. An inverted hammer candlestick is usually found at the top of up trends or near resistance levels.