BULLISH INVERTED HAMMER
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.
BULLISH INVERTED HAMMER
Definition
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.
Title
Pattern Performance in Stock Exchanges since 1/1/2014
Country
Stock Exchange
Website
Patterns
Total
Confirmed
Total
Profitable
Signals
Confirmation
%
Profitable
Signal%
Per Trade
Samples
Profit%
Loss%
Total Net%(Descending)
The World 64255325231889750.6358.098.980.878.11
USOTC PINK 2136120358656.3248.718.522.306.22
ChinaSSE 107062643558.5069.496.830.696.13
JapanNAGOYA 38221057.8945.456.360.685.68
ChinaSZSE 1875102868354.8366.446.150.885.27
PakistanKSE 62431218350.0058.656.230.985.25
EgyptEGX 161803649.6945.006.631.485.15
IndiaBSE 56682749156648.5056.976.131.294.84
PortugalLISBON 186633.33100.004.670.004.67
South KoreaKOSDAQ 2415117073748.5362.885.320.734.59
IndiaNSE 3376150988344.7358.485.511.024.49
ArgentinaBUE 72382652.7868.425.080.664.42
USWARRANTS 1812566.6741.676.252.084.17
Hong KongHKEX 61116.67100.004.000.004.00
IndonesiaIDX 3801639942.8960.744.610.783.83
Hong KongHKEX 170777141345.1753.574.661.133.53
IsraelTASE 46925116453.5265.344.130.613.52
PortugalLISBON 73392053.4251.284.461.003.46
OmanMSM 43175.0033.334.000.673.33
South KoreaKRX 170785150749.8559.583.900.693.21
UKLSE 2810835.7180.003.400.203.20
Vietnam HOSE 37018110048.9255.254.180.983.20
USNASDAQ 45512253130249.5157.794.171.003.17
CanadaTSX-V 186934450.0047.315.632.573.06
USAMEX 73738419552.1050.784.201.183.01
Greece ATHENS 154426.67100.003.000.003.00
Austria WIENERBORSE 144428.57100.003.000.003.00
MexicoBMV 1971247362.9458.873.690.712.98
Greece ATHENS 91512756.0452.944.081.122.96
BrazilBOVESPA 50224113948.0157.683.730.832.90
JapanTOKYO 55723007181153.9760.233.520.682.84
UAEUAE 60281546.6753.573.540.712.82
TaiwanGTSM 151663937742.1559.003.410.642.77
BangladeshDSE 75435717147.3547.903.620.972.65
Poland GPW 52727015051.2355.563.460.842.61
SwedenSTOCKHOLM 73140222954.9956.973.420.982.45
RussiaMICEX 186915348.9258.243.220.792.43
NorwayOSE 2721327048.5353.033.791.382.41
SpainIBEX 226527.2783.332.670.332.33
SpainIBEX 2361136847.8860.183.000.692.31
TurkeyBIST 167543.7571.432.290.002.29
FrancePARIS 129068140552.7959.472.950.682.28
MalaysiaBURSA 3821739845.2956.653.100.842.27
BelgiumBRUSSELS 186533.3383.332.330.172.17
ArgentinaBUE 206230.0033.332.500.332.17
GermanyXETRA 176535.2983.332.330.172.17
FrancePARIS 176535.2983.332.330.172.17
ItalyBORSA 176535.2983.332.330.172.17
NetherlandsAMSTERDAM 186533.3383.332.330.172.17
CanadaTSX 181596354353.0656.392.820.672.15
ThailandSET 65324912438.1349.803.191.052.14
AustraliaASX 77440322552.0755.832.820.682.13
NetherlandsAMSTERDAM 33218810856.6357.452.590.562.03
Saudi ArabiaTADAWUL 2531147545.0665.792.660.642.02
KuwaitKSE 217333.3342.865.003.002.00
BelgiumBRUSSELS 2671256846.8254.402.540.561.98
USNYSE 48012631158354.8460.122.630.661.96
TaiwanTWSE 185280542843.4753.172.580.651.93
QatarQE 101432042.5746.512.790.911.88
PhilippinesPSE 2741075439.4250.002.670.801.87
GermanyXETRA 151687750057.9856.882.530.671.85
ChileBCS 158753.3387.501.880.131.75
UKLSE 3198159389449.8156.122.540.811.73
AustraliaASX 1611968.7581.821.910.181.73
RussiaMICEX 139669.2366.671.890.221.67
ItalyBORSA 132567539150.9457.932.350.701.65
ChileBCS 61211034.4347.622.000.381.62
DenmarkCOPENHAGEN 157546.6771.431.710.141.57
Austria WIENERBORSE 81472858.0259.571.810.281.53
DenmarkCOPENHAGEN 1841014454.8943.562.390.971.42
SingaporeSGX 207964746.3848.962.190.821.36
IsraelTASE 123325.00100.001.330.001.33
TurkeyBIST 4041688341.5849.402.010.781.23
BrazilBOVESPA 2714951.8564.291.640.431.21
FOREXFOREX 167543.7571.431.140.001.14
SwitzerlandSIX 58334318258.8353.061.660.551.11
Poland GPW 82125.0050.001.000.001.00
IndonesiaIDX 73242.8666.671.000.001.00
UAEUAE 2811339.2927.271.000.090.91
CanadaTSX 149564.2955.561.110.220.89
South KoreaKOSDAQ 187438.8957.140.860.000.86
PeruBVL 206430.0066.671.000.170.83
JapanFUKUOKA 106160.0016.671.170.330.83
Vietnam HNX 97482049.4841.672.441.630.81
MexicoBMV 1910652.6360.000.900.100.80
Vietnam HOSE 2113861.9061.540.850.080.77
MalaysiaBURSA 1912963.1675.000.830.080.75
PhilippinesPSE 2112657.1450.000.750.170.58
ChinaSSE 157346.6742.860.570.000.57
USPREFERRED 62235618857.2352.810.870.300.57
JapanTOKYO 156340.0050.000.500.000.50
SingaporeSGX 168550.0062.500.630.130.50
USOTCBB 42150.0050.003.002.500.50
SwitzerlandSIX 137453.8557.140.570.140.43
USFOREX 2510540.0050.000.400.100.30
NorwayOSE 137253.8528.570.570.290.29
JordanASE 278329.6337.501.381.130.25
ThailandSET 115245.4540.001.000.800.20
BangladeshDSE 127458.3357.140.570.430.14
PakistanKSE 149364.2933.330.220.220.00
SwedenSTOCKHOLM 6000.000.000.000.000.00
IndiaNSE 39181046.1555.560.390.390.00
TaiwanGTSM 165131.2520.000.200.40-0.20
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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