Trends/Candlestick patterns

Inverted hammer

A small body near the bottom with a long upper wick, after a fall.

Candlestick patternsBest on 3M, 6MAlso called inverted hammer candle
Inverted hammer diagramIllustration of the inverted hammer shape. It is a sketch, not real price data.Inverted hammer
Illustration of the inverted hammer shape. It is a sketch, not real price data.

What it shows

An inverted hammer has the same look as a shooting star, but it appears after a decline. The body sits in the lower third with a long upper wick.

During the bar price tried to rise but closed near the open.

How we find it

The same code that draws it on your chart follows these steps, with the same result every time.

  1. Check price fell over the last 5 bars.
  2. Body in the lower third of the range.
  3. Upper wick ≥ 2× body.
  4. Lower wick very small.

Starting values: Upper wick ≥ 2× body; Prior fall 5 bars. These are proposed and will be tuned on real price data before launch.

How to read it

  • The gold candle is the inverted hammer.
  • Candles before it fall.
  • The long wick shows an attempt higher.

Status labels you may see

LabelWhat it means
TodayRule met on the last bar.
RecentlyWithin the last 5 bars.
NoneNot found.

What cancels it

Nothing cancels it.

What traders check next

  • Next bar's close.
  • Volume.
  • Wick size.

Limits

  • Weaker evidence than a hammer by some studies.
  • Needs context.
  • Single bar.

Try it in forecastviz

  • Open any ticker and choose Candlestick patterns → Inverted hammer in the left menu.
  • Switch between 3M, 6M to see how the picture changes.
  • Compare with Shooting star and Hammer on the same chart.

Questions

Shooting star or inverted hammer?

Same shape, different prior move.

Does it predict a rise?

No claim.

Related trends

Further reading

  • Nison, Japanese Candlestick Charting Techniques
  • Bulkowski, Encyclopedia of Candlestick Charts
  • Morris, Candlestick Charting Explained

Educational only. Not financial advice, and not a price forecast. Charts are drawn by code from past price data, which may be delayed.