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 158553.3362.5012.501.7510.75
The World 61688314931863151.0759.139.220.868.36
JapanNAGOYA 33201160.6155.007.550.507.05
ChinaSSE 107566744762.0567.026.950.656.30
IndiaBSE 57012771162548.6158.646.771.255.53
ChinaSZSE 1829106272858.0668.556.260.835.43
IndiaNSE 3451157195945.5261.045.880.994.89
South KoreaKOSDAQ 2465120477348.8464.205.390.734.66
Austria WIENERBORSE 52240.00100.004.500.004.50
USOTC PINK 2234126160656.5847.946.772.384.39
OmanMSM 64266.6750.004.750.504.25
USWARRANTS 2213659.0946.156.081.924.15
JapanFUKUOKA 128366.6737.504.250.254.00
QatarQE 97422443.3057.144.670.674.00
IndonesiaIDX 3521529043.1859.214.760.823.95
EgyptEGX 2111126053.0853.575.131.263.87
Hong KongHKEX 177780442745.2453.
RussiaMICEX 191986251.3163.274.180.653.53
ArgentinaBUE 56301953.5763.334.370.933.43
TaiwanGTSM 155565538942.1259.394.060.703.36
South KoreaKRX 173086952250.2360.073.880.673.21
USNASDAQ 48762426143549.9058.984.030.923.11
TurkeyBIST 103330.00100.
IsraelTASE 48223914549.5960.673.630.642.99
JapanTOKYO 56023040186554.2761.353.620.692.94
UAEUAE 63271542.8655.563.410.522.89
MexicoBMV 1991237461.8160.163.460.702.76
PortugalLISBON 76391951.3248.724.001.262.74
BrazilBOVESPA 50324914449.5057.833.530.842.69
USAMEX 74538520651.6853.513.741.162.58
Saudi ArabiaTADAWUL 2441127345.9065.183.220.672.55
SpainIBEX 2361026243.2260.783.160.692.47
SwedenSTOCKHOLM 68737921555.1756.733.410.992.42
NorwayOSE 2521196147.2251.263.741.462.28
AustraliaASX 76839221951.0455.872.930.652.27
FrancePARIS 130767740551.8059.822.890.662.23
CanadaTSX 1921103859554.0357.322.810.602.21
CanadaTSX-V 174964555.1746.885.233.142.09
DenmarkCOPENHAGEN 1961135457.6547.793.020.932.09
USNYSE 49862734167854.8361.382.710.662.05
TaiwanTWSE 196184145342.8953.862.640.651.99
BelgiumBRUSSELS 2631236846.7755.282.460.511.95
GermanyXETRA 156089851657.5657.462.660.731.93
MalaysiaBURSA 3871719444.1954.972.740.831.91
Greece ATHENS 118582949.1550.
TurkeyBIST 4241577737.0349.042.760.891.87
NetherlandsAMSTERDAM 34220512359.9460.002.410.581.83
UKLSE 3258161992649.6957.202.570.781.79
Austria WIENERBORSE 83462855.4260.872.090.351.74
ItalyBORSA 131564336949.1357.122.400.711.70
SingaporeSGX 216974944.9150.522.320.731.59
SwitzerlandSIX 62237420160.1353.741.850.551.30
FOREXFOREX 147550.0071.430.710.000.71
USAMEX 185427.7880.000.800.200.60
USPREFERRED 65137618857.7650.000.850.340.52
JordanASE 288228.5725.001.381.250.13
KuwaitKSE 198242.1125.003.253.75-0.50
CanadaCSE 63150.0033.333.337.00-3.67
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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