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 116354.5550.0013.502.3311.17
The World 59772305451809251.1259.219.430.878.56
JapanNAGOYA 30171056.6758.828.760.538.24
ChinaSSE 104965344262.2567.697.020.676.35
IndiaBSE 54952680157548.7758.776.891.265.63
ChinaSZSE 1811104672257.7669.026.350.865.49
IndiaNSE 3328152593545.8261.315.970.984.98
South KoreaKOSDAQ 2371116574549.1463.955.420.744.68
JapanFUKUOKA 117363.6442.864.860.294.57
Austria WIENERBORSE 52240.00100.004.500.004.50
USOTC PINK 2128121057657.0047.496.852.424.43
OmanMSM 64266.6750.004.750.504.25
USWARRANTS 2113661.9046.156.081.924.15
QatarQE 93412344.0956.104.760.684.07
IndonesiaIDX 3421488943.2760.144.800.813.99
Hong KongHKEX 173077941645.0353.405.091.213.88
RussiaMICEX 184936050.5464.524.290.613.68
ArgentinaBUE 55301954.5563.334.370.933.43
EgyptEGX 2041075652.4552.344.611.273.34
TaiwanGTSM 150563437842.1359.624.040.713.33
South KoreaKRX 166983850150.2159.793.920.683.24
USNASDAQ 47312354138449.8458.694.090.943.15
IsraelTASE 46022613749.1360.623.700.643.06
UAEUAE 62261541.9457.693.540.503.04
TurkeyBIST 103330.00100.
JapanTOKYO 54352949182754.2661.953.680.682.99
PortugalLISBON 73371850.6848.654.001.242.76
BrazilBOVESPA 48824214049.5957.853.590.862.73
MexicoBMV 1911187361.7861.863.400.692.71
USAMEX 71537019551.7552.703.781.192.59
Saudi ArabiaTADAWUL 2341086946.1563.893.220.692.54
SwedenSTOCKHOLM 66136921155.8257.183.490.992.50
NorwayOSE 2431145846.9150.883.881.502.38
SpainIBEX 2341015943.1658.423.030.722.31
AustraliaASX 73537220650.6155.382.920.622.30
CanadaTSX 1852100257954.1057.782.890.592.30
FrancePARIS 127165539351.5360.002.900.672.23
USNYSE 48392644162354.6461.382.760.662.10
DenmarkCOPENHAGEN 1921125358.3347.323.010.942.07
BelgiumBRUSSELS 2571186545.9155.082.560.532.03
CanadaTSX-V 173944354.3445.745.163.162.00
GermanyXETRA 151087650658.0157.762.720.722.00
TaiwanTWSE 191882644743.0754.122.650.652.00
Greece ATHENS 117582949.5750.
TurkeyBIST 4051517237.2847.682.830.931.90
MalaysiaBURSA 3791689244.3354.762.730.831.90
NetherlandsAMSTERDAM 33220011960.2459.502.410.591.82
Austria WIENERBORSE 82452854.8862.222.130.361.78
UKLSE 3154156389149.5657.012.560.791.77
ItalyBORSA 127462835749.5356.582.380.721.66
SingaporeSGX 207924644.4450.002.360.761.60
SwitzerlandSIX 60636719760.5653.681.710.541.17
FOREXFOREX 137553.8571.430.710.000.71
USAMEX 185427.7880.000.800.200.60
USPREFERRED 62636118257.6750.420.850.330.52
JordanASE 277225.9328.571.571.140.43
KuwaitKSE 188244.4425.003.253.75-0.50
CanadaCSE 31033.330.000.007.00-7.00
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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