The chart showing Series 1 series.
To see the performance of the pattern in your stock exchange in the context of other stock markets please examine the table below. Find your stock market there and see how it ranks among the others. This will give you an idea about the pattern’s strength and reliability and help you in your buying decisions.
This pattern consists of a black body followed by an Inverted Hammer that is characterized by a long upper shadow and a small body. It is similar in shape to the Bearish Shooting Star but unlike the Shooting Star, the Inverted Hammer appears in a downtrend and signals a bullish reversal.
Recognition Criteria
1. The market is characterized by a prevailing downtrend.
2. The first day of the pattern is a black candlestick.
3. On the second day, a small body at the lower end of the trading range is observed. Color of this body is not important.
4. The upper shadow of this second candlestick should be at least twice as long as the body.
5. There is (almost) no lower shadow.
Pattern Requirements and Flexibility
The body of the Inverted Hammer should be small. The upper shadow should be at least twice as long as the body but not shorter than an average candlestick length. It is desired that there is no or a very tiny lower shadow. The bottom of the inverted hammer should be lower than the preceding candlestick’s body.
Trader’s Behavior
The pattern occurs in a bearish background and the black candlestick that appears on the first day further supports the bearishness. On the second day, in which an Inverted Hammer is seen, market opens at or near its low. Then prices change direction and we see a rally. However, the bulls do not succeed in sustaining the rally during the rest of the day and prices finally close either at or near the low of the day. It may not be clear why this type of price action is interpreted as a potential reversal signal. The answer has to do with what happens over the next day. If the next day opens above the body of the Inverted Hammer, it means that those who shorted at the opening or closing of the Inverted Hammer day are losing money. The longer the market holds above the Inverted Hammer’s body, the more likely these shorts will attempt to cover their positions. This may ignite a rally as a result of covered short positions, which may then inspire the bottom pickers to take long positions.
Buy/Stop Loss Levels
The confirmation level is defined as the midpoint of the upper shadow of the inverted hammer. Prices should cross above this level for confirmation.

The stop loss level is defined as the lower of the last two lows. Following the BUY, if prices go down instead of going up, and close or make two consecutive daily lows below the stop loss level, while no bearish pattern is detected, then the stop loss is triggered.
Pattern Performance in Stock Exchanges since 1/1/2014
Stock Exchange
Per Trade
Total Net%(Descending)
USOTCBB 86375.0050.0015.832.3313.50
The World 65286333431969851.0959.068.940.868.08
JapanNAGOYA 35201157.1455.007.100.506.60
ChinaSSE 119272748660.9966.856.600.665.94
OmanMSM 32166.6750.006.000.505.50
IndiaBSE 60602948171948.6558.316.661.265.40
ChinaSZSE 2067116778256.4667.016.040.875.17
USOTC PINK 2388135465556.7848.307.342.354.98
IndiaNSE 36571667101845.5861.075.910.984.93
EgyptEGX 2181156252.7553.916.031.234.79
UKLSE 257628.0085.714.860.144.71
PortugalLISBON 156640.00100.004.670.004.67
South KoreaKOSDAQ 2556125079948.9063.925.350.724.63
USWARRANTS 2113661.9046.
Hong KongHKEX 51120.00100.
IndonesiaIDX 3831659743.0858.794.640.813.83
QatarQE 106452442.4553.334.360.623.73
Hong KongHKEX 184983844345.3252.864.881.173.71
IsraelTASE 51726516551.2662.263.940.643.30
TaiwanGTSM 165870041642.2259.433.950.693.26
MexicoBMV 2131327961.9759.853.910.703.20
UAEUAE 67301844.7860.003.700.503.20
South KoreaKRX 180992055251.0259.803.820.653.18
USNASDAQ 50782532150549.8659.444.080.923.16
RussiaMICEX 2041016349.5162.383.790.683.11
JapanTOKYO 59723188195153.3861.203.720.693.03
ArgentinaBUE 63331952.3857.583.970.943.03
Greece ATHENS 134430.77100.
Austria WIENERBORSE 124433.33100.
USAMEX 76939721051.8952.633.901.042.86
PortugalLISBON 80432153.7548.844.001.212.79
BrazilBOVESPA 52625514748.4857.653.550.852.70
SpainIBEX 2441066343.4459.433.080.682.41
Saudi ArabiaTADAWUL 2661228045.8665.572.980.642.34
SwedenSTOCKHOLM 74541423555.5756.763.310.972.34
SpainIBEX 186533.3383.332.670.332.33
AustraliaASX 81741723351.0455.882.920.662.26
FrancePARIS 134970842752.4860.312.900.652.25
Greece ATHENS 123613049.5949.183.481.232.25
TurkeyBIST 156440.0066.672.170.002.17
ItalyBORSA 146542.8683.332.330.172.17
NetherlandsAMSTERDAM 156540.0083.332.330.172.17
BelgiumBRUSSELS 156540.0083.332.330.172.17
ArgentinaBUE 206230.0033.332.500.332.17
GermanyXETRA 146542.8683.332.330.172.17
FrancePARIS 146542.8683.332.330.172.17
DenmarkCOPENHAGEN 2031165657.1448.283.070.912.16
CanadaTSX 2002108261954.0557.212.740.582.16
NorwayOSE 2721256345.9650.403.541.452.10
MalaysiaBURSA 41618610544.7156.452.840.782.06
BelgiumBRUSSELS 2831327246.6454.552.550.512.04
TaiwanTWSE 206389548843.3854.532.660.642.02
CanadaTSX-V 1991095254.7747.715.083.072.01
JapanFUKUOKA 117263.6428.572.290.292.00
USNYSE 51982885176555.5061.182.640.661.98
AustraliaASX 1510866.6780.
GermanyXETRA 161493053657.6257.632.610.731.88
NetherlandsAMSTERDAM 34720412458.7960.782.450.601.85
UKLSE 3395169296449.8456.972.560.761.80
SingaporeSGX 2281055646.0553.332.510.721.79
RussiaMICEX 118572.7362.502.000.251.75
TurkeyBIST 4481799039.9650.282.530.831.70
ItalyBORSA 139969640249.8257.682.340.691.65
Austria WIENERBORSE 89503156.1862.002.000.361.64
DenmarkCOPENHAGEN 157546.6771.431.710.141.57
ChileBCS 157646.6785.711.710.141.57
IsraelTASE 112218.18100.001.500.001.50
SwitzerlandSIX 64538320559.3853.521.840.541.30
BrazilBOVESPA 2714951.8564.291.640.431.21
South KoreaKOSDAQ 165331.2560.
FOREXFOREX 147550.0071.431.140.001.14
Poland GPW 72128.5750.
IndonesiaIDX 73242.8666.671.000.001.00
CanadaTSX 128566.6762.501.250.251.00
UAEUAE 2811339.2927.
MexicoBMV 189650.0066.671.000.110.89
PeruBVL 206430.0066.671.000.170.83
Vietnam HOSE 2113861.9061.540.850.080.77
MalaysiaBURSA 1912963.1675.000.830.080.75
ChinaSSE 157446.6757.140.710.000.71
PhilippinesPSE 2112657.1450.000.750.170.58
USPREFERRED 66638119657.2151.440.870.330.54
JapanTOKYO 146242.8633.330.500.000.50
SwitzerlandSIX 126450.0066.670.670.170.50
SingaporeSGX 168550.0062.500.630.130.50
USFOREX 249537.5055.560.440.110.33
NorwayOSE 127258.3328.570.570.290.29
ThailandSET 105250.0040.001.000.800.20
BangladeshDSE 116354.5550.000.500.500.00
IndiaNSE 39181046.1555.560.390.390.00
JordanASE 3310330.3030.
SwedenSTOCKHOLM 6000.
PakistanKSE 138261.5425.000.130.25-0.13
TaiwanGTSM 165131.2520.000.200.40-0.20
KuwaitKSE 228236.3625.003.253.75-0.50
CanadaCSE 105150.0020.002.009.00-7.00
Patterns Total: How many of this particular pattern has been detected in this period
Confirmed Total: How many of the detected patterns were confirmed and converted into signals
Profitable Signals: The number of the confirmed patterns that have given profitable trades
Confirmation %: The percentage of the confirmed patterns with respect to the total occurrences of this pattern
Profitable Signal %: The percentage of the successful confirmed patterns with respect to the total confirmed patterns
Per Trade Profit %: Total Profits / Total Trades
Per Trade Loss %: Total Losses / Total Trades
Per Trade Net%: (Total Profits–Total Losses) / Total Number of Trades
Samples: Live sample ticker symbols from stock exchanges with links to stock pages of the related bulls.com© family websites
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