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)
USOTCBB 138561.5462.5012.501.7510.75
JapanNAGOYA 29161055.1762.509.310.508.81
The World 58712298761762550.9258.969.530.878.66
ChinaSSE 106065443961.7067.136.980.676.30
IndiaBSE 53702611153648.6258.836.941.275.67
ChinaSZSE 1793103571357.7268.896.420.855.57
IndiaNSE 3238148791945.9261.806.030.995.04
South KoreaKOSDAQ 2293111771848.8064.165.430.734.71
JapanFUKUOKA 117363.6442.864.860.294.57
Austria WIENERBORSE 52240.00100.004.500.004.50
USOTC PINK 2084118656057.1547.026.672.374.30
OmanMSM 64266.6750.004.750.504.25
QatarQE 91402243.9655.004.880.704.18
USWARRANTS 2113661.9046.156.081.924.15
IndonesiaIDX 3421458742.4060.004.830.764.08
Hong KongHKEX 171176440544.7152.945.041.223.82
RussiaMICEX 181946151.9364.894.240.683.56
ArgentinaBUE 55301954.5563.334.430.933.50
South KoreaKRX 162981849250.2160.154.000.683.32
TaiwanGTSM 147762236942.1159.324.040.733.31
UAEUAE 61251540.9860.003.680.523.16
USNASDAQ 46502308135449.7458.544.070.953.12
EgyptEGX 1981045352.5350.964.371.313.06
TurkeyBIST 103330.00100.003.000.003.00
JapanTOKYO 53452885177653.9861.563.640.692.94
IsraelTASE 44921813348.5561.013.500.652.84
MexicoBMV 1851147161.6262.283.510.672.84
PortugalLISBON 73371850.6848.654.001.242.76
Saudi ArabiaTADAWUL 223996444.3964.653.320.712.62
BrazilBOVESPA 48123513348.8656.603.430.882.54
USAMEX 71136819851.7653.803.651.112.53
NorwayOSE 2311125748.4850.893.921.502.42
SwedenSTOCKHOLM 64535319954.7356.373.331.022.31
AustraliaASX 71536319650.7753.992.860.632.23
DenmarkCOPENHAGEN 1881095257.9847.713.090.892.20
FrancePARIS 123163037151.1858.892.850.692.17
CanadaTSX 183298856853.9857.432.750.592.15
SpainIBEX 222925241.4456.522.890.792.10
USNYSE 48252632160754.5561.062.760.672.09
GermanyXETRA 147785648557.9656.662.710.731.97
BelgiumBRUSSELS 2501136245.2054.872.500.551.96
TaiwanTWSE 189080943742.8054.022.590.661.93
UKLSE 3084151986349.2956.782.670.801.87
NetherlandsAMSTERDAM 32519411559.6959.282.420.601.82
Austria WIENERBORSE 80452856.2562.222.130.361.78
MalaysiaBURSA 3711628743.6753.702.630.861.77
TurkeyBIST 4001476936.7546.942.670.941.73
ItalyBORSA 125261534849.2856.402.370.731.65
SingaporeSGX 202904544.5550.002.340.721.62
Greece ATHENS 116542746.5550.002.961.351.61
CanadaTSX-V 168904053.5744.444.733.301.43
SwitzerlandSIX 59335519059.8753.521.740.561.17
FOREXFOREX 137553.8571.430.710.000.71
USAMEX 185427.7880.000.800.200.60
JordanASE 257228.0028.571.571.140.43
USPREFERRED 63035917756.9849.300.730.330.40
KuwaitKSE 168250.0025.003.253.75-0.50
CanadaCSE 42150.0050.001.503.50-2.00
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
About Us
Support
Privacy
TOS
Important Links
English
Deutsch
中文
Français
Türkçe
Indonesia
Español
Italiano
 
 
 
 
 
 
 
 
 
 

Disclaimers:

Government regulations require disclosure of the fact that while these methods may have worked in the past, past results are not necessarily indicative of future results. While there is a potential for profits there is also a risk of loss. There is substantial risk in security trading. Losses incurred in connection with trading stocks or futures contracts can be significant. You should therefore carefully consider whether such trading is suitable for you in the light of your financial condition since all speculative trading is inherently risky and should only be undertaken by individuals with adequate risk capital. Neither Americanbulls.com LLC, nor Candlesticker.com makes any claims whatsoever regarding past or future performance. All examples, charts, histories, tables, commentaries, or recommendations are for educational or informational purposes only.

Candlesticker.com is an independent and free website and all the Services provided by Americanbulls.com LLC at Candlesticker.com are completely free of charge. Americanbulls.com LLC does not receive compensation by any direct or indirect means from the visitors and users of this website (or of any other bulls.com© family websites), and from the stocks, securities and other institutions or any underwriters or dealers associated with the broader national or international forex, commodity and stock markets.

You agree that Candlesticker.com and Americanbulls.com LLC its parent company, subsidiaries, affiliates, officers and employees shall not be liable for any direct, indirect, incidental, special or consequential damages.