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Bullish reversal Candlestick pattern Single candle

Inverted Hammer Candlestick Pattern

An inverted hammer is a candle with a small body near the bottom and a long upper wick, appearing after a decline. It looks like an upside-down hammer.

Inverted Hammer candlestick pattern explained with labels: bullish signal on a 3D candlestick chart
Inverted Hammer: the highlighted candles show the pattern, the faded candles show the trend before it. Tap the image to zoom.

How to spot a Inverted Hammer

  • Small body near the low
  • Long upper wick, about twice the body or more
  • Forms after a fall

What the Inverted Hammer tells you

After a decline, buyers tried to push price much higher. They could not hold all of it, but the attempt shows selling pressure is weakening. It needs a strong confirmation candle more than a normal hammer does.

How traders use it

  • Wait for the next candle to close above the inverted hammer high
  • Enter after confirmation
  • Place the stop below the candle low

Common mistakes

  • Mistaking it for a shooting star: the location decides
  • Buying without confirmation
  • Ignoring the higher-timeframe trend
EP 01: Candlestick Patterns for Beginners See it on a real chart · EP 01Candlestick Patterns for BeginnersWatch the free lesson →

Questions about the Inverted Hammer

Is an inverted hammer bullish?

It is a possible bullish reversal after a decline, but it is weaker on its own than a hammer and needs confirmation.

Inverted hammer vs shooting star?

They look the same. An inverted hammer appears after a fall (bullish); a shooting star appears after a rally (bearish).

For education only, not financial advice. The chart is an illustration of the pattern, not real market data. No pattern works every time; always use a stop-loss.

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