Inverted hammer candlestick: Learn how to identify and

Learn how to identify and trade the inverted hammer candlestick pattern, a bullish reversal formation that occurs at the end of a downtrend. See examples, pros and cons, and tips for using RSI and Fibonacci levels. 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 trade the inverted hammer , a bullish reversal pattern that signals a possible trend change from downtrend to uptrend. See examples, trading strategy and tips for long term investors. The hammer and the inverted hammer candlestick patterns are among the most popular single-candle formations. They’ve been named as such because of their visual resemblance to a hammer – a short body on one end and a long wick on another. The hammers’ description may sound similar to a Doji candle. However, while the body of a doji candle is so short that it looks like a horizontal line, both hammer and inverted hammer have slightly longer, visible bodies. Let’s see how they look ...