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 168550.0062.5012.501.7510.75
The World 63898326301928851.1059.089.060.868.20
JapanNAGOYA 35201157.1455.007.550.507.05
ChinaSSE 116570847160.7766.536.720.666.06
IndiaBSE 59102884168848.8058.536.711.245.47
ChinaSZSE 2043114876956.1966.996.070.875.20
IndiaNSE 35851639100445.7261.265.920.984.94
EgyptEGX 2121126052.8353.576.091.264.83
USOTC PINK 2338130862756.2047.727.242.414.83
South KoreaKOSDAQ 2531123979649.0364.145.310.724.59
OmanMSM 64266.6750.004.750.504.25
QatarQE 103432441.7555.814.560.653.91
IndonesiaIDX 3731609342.9058.134.610.833.78
Hong KongHKEX 181582643645.5152.784.961.193.77
USWARRANTS 2314660.8742.865.641.933.71
MexicoBMV 2061287862.1460.944.040.683.36
Austria WIENERBORSE 63350.00100.003.330.003.33
TaiwanGTSM 162368540542.2159.123.960.703.26
UAEUAE 67291743.2858.623.760.523.24
South KoreaKRX 177689654150.4560.383.880.663.22
RussiaMICEX 1981006350.5163.003.830.643.19
ArgentinaBUE 60321953.3359.384.090.913.19
USNASDAQ 50132499147749.8759.084.100.933.17
IsraelTASE 50625615950.5962.113.810.643.17
JapanTOKYO 58423137192153.7161.223.690.693.00
PortugalLISBON 79412051.9048.784.071.202.88
USAMEX 76539821252.0353.273.831.042.80
TurkeyBIST 124433.33100.002.750.002.75
BrazilBOVESPA 52425414849.0557.593.450.822.63
SpainIBEX 2431056343.2160.003.210.692.52
Saudi ArabiaTADAWUL 2551187646.2764.413.040.652.39
SwedenSTOCKHOLM 71640022556.0156.113.330.992.34
NorwayOSE 2641216146.5949.593.581.242.34
FrancePARIS 132869041651.9660.292.930.652.28
AustraliaASX 79640722751.1355.772.920.662.26
CanadaTSX 1962106360554.1856.912.780.592.19
DenmarkCOPENHAGEN 2001155557.5047.833.070.912.16
MalaysiaBURSA 40618210344.8356.592.910.782.13
USNYSE 51052817173855.2061.672.710.662.04
Greece ATHENS 121613050.4149.
JapanFUKUOKA 117263.6428.572.290.292.00
TaiwanTWSE 203587847443.1453.992.640.651.99
CanadaTSX-V 1911054855.5045.
GermanyXETRA 159692253157.7757.592.660.731.93
NetherlandsAMSTERDAM 34720712559.6560.392.440.571.86
BelgiumBRUSSELS 2761297046.7454.262.360.501.85
UKLSE 3357167695549.9356.982.570.771.80
Austria WIENERBORSE 86473054.6563.832.090.341.74
SingaporeSGX 2241025145.5450.002.470.751.72
ItalyBORSA 135866938549.2657.552.400.711.69
TurkeyBIST 4371698438.6749.702.500.851.64
SwitzerlandSIX 63838220559.8753.661.850.541.31
FOREXFOREX 158653.3375.000.880.000.88
USAMEX 185427.7880.000.800.200.60
USPREFERRED 65837719457.2951.460.880.330.55
JordanASE 298227.5925.001.381.250.13
KuwaitKSE 218238.1025.003.253.75-0.50
CanadaCSE 94144.4425.002.508.25-5.75
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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