The Inverted Hammer is a reversal pattern that has a small-body candlestick. Your upper shadow should be big, twice or more the size of your body. It is preferable that there is no lower shadow, but if there is, it needs to be very small (smaller than body size). Also known by the English term Inverted Hammer, the Inverted Hammer is a bullish reversal pattern.
- Bullish: When the inverted hammer candlestick is identified and its color is green.
- Bearish: When the inverted hammer candlestick is identified and its color is red.