Inverted Hammer candlestick pattern

1-candle patternPossible bullish signal

Inverted Hammer candlestick pattern

A small body with a long upper wick after a fall. Buyers are starting to test higher prices.

After a price declineClose above openClose below open

Illustrative candles, not a live chart. Each candle covers one chart interval.

Spot it in 3 steps

What to check next

Needs a strong green candle next to confirm the turn.

Common mistake

After a rise the same shape is a shooting star (bearish).

Definition reference: Investopedia

Educational example, not a trade recommendation. Patterns can fail. Check the wider trend, support and resistance; practise on demo rather than assuming the next trade will win.

Inverted Hammer candlestick pattern