Single-candle pattern

Inverted Hammer candlestick pattern

A single candle that traders read as bullish, needs confirmation. How to recognize the Inverted Hammer, what it suggests about buyers and sellers, and where it matters.

Bullish, needs confirmation1 candle

Faded candles show the trend before the pattern. The dashed box marks the pattern.

How to recognize it

  • Appears after a decline.
  • Small body near the low of the range.
  • Upper shadow at least twice the length of the body; little or no lower shadow.

What it suggests

Buyers attempted a rally that did not hold, so at first sight the candle looks weak. Its significance is that buyers showed up at all after a decline. If the next session closes higher, that earlier attempt starts to look like the first sign of demand.

Where it matters

Most relevant at a support zone after a sustained decline.

Educational content only. Candlestick patterns describe past price action. They do not predict future prices, and they are not trading signals or investment advice. Prices in the diagrams are illustrative.

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