Inverted hammer: The Inverted Hammer candlestick

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 use the Inverted Hammer Candlestick Pattern, a bullish reversal chart pattern that forms during a downtrend. See the key components, structure, and trading tips of this pattern, as well as its red and green variants. A hammer is a kind of bullish reversal candlestick pattern.A hanging man candle is similar to the " hammer " candle in its appearance.