Inverted Hammer Candlestick Pattern

Inverted Hammer Candlestick Pattern is a bullish reversal candle pattern that is found after the downtrend. Similar to shooting start, if you look, the body is small at the bottom, with a longer shadow at the top& little lower shadow. the longer the upper shadow, the more buying has happened.

The color of the candle can be any green or red.

However as it is a reversal pattern and the prior trend is an downtrend, it is advisable to look for green, showing buyers have made an entry after long bearishness.

Let us see how does it look on chart:


Inverted Hammer Candlestick Pattern


Above is nifty day chart, as you can see the appearance of inverted hammer, stopped the downtrend and reversal happen.

Do not underestimate as its a day chart, within few session one could have earned as nifty was at 10130 and moved till 10436 , within 3 sessions, its a quick trade for short term traders.