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 1/1/2016
Country 
Stock Exchange 
Website 
Patterns
Total
 
Confirmed
Total
 
Profitable
Signals
 
Confirmation
%
 
Profitable
Signal%
 
Per Trade 
Samples 
Profit% 
Loss% 
Total Net% Descending
The World 68263335171717849.1251.238.661.177.49
JapanNAGOYA 3615641.6740.006.530.406.13
ArgentinaBUE 117473241.0366.674.810.654.17
PortugalLISBON 217633.3385.714.290.144.14
USOTC PINK 2554136259053.4543.227.273.373.90
PakistanKSE 70832817246.3352.444.741.423.32
IndiaNSE 3870161378341.6848.544.711.403.31
IndiaBSE 63792971144046.5748.474.941.653.29
South KoreaKOSDAQ 2842132771546.7653.804.381.143.24
IndonesiaIDX 4001828545.5046.704.321.193.13
ChinaSZSE 2570126367249.1453.214.251.203.05
Greece ATHENS 185427.7880.003.200.203.00
Austria WIENERBORSE 175429.4180.003.200.203.00
ChinaSSE 144872339049.9353.943.860.902.96
Poland GPW 42121811052.0250.233.991.052.94
EgyptEGX 2081024649.0445.104.221.332.88
SwedenSTOCKHOLM 107452025948.4249.814.041.172.87
KuwaitKSE 48241750.0070.834.081.252.83
RussiaMICEX 2621156743.8958.263.420.792.63
USNASDAQ 49442349120947.5951.383.971.362.61
Hong KongHKEX 165876440646.0853.143.751.162.58
DenmarkCOPENHAGEN 194421.05100.002.500.002.50
CanadaTSX-V 2351094846.3844.045.543.072.47
South KoreaKRX 209999850547.5550.603.310.862.44
USAMEX 77741420753.2850.003.971.532.43
SpainIBEX 257528.0071.432.860.432.43
BrazilBOVESPA 48022111646.0452.493.571.152.42
ThailandSET 57121311237.3052.583.341.002.34
TurkeyBIST 3581426639.6646.483.010.692.32
ItalyBORSA 207535.0071.432.570.292.29
GermanyXETRA 207535.0071.432.570.292.29
FrancePARIS 207535.0071.432.570.292.29
BelgiumBRUSSELS 217533.3371.432.570.292.29
NetherlandsAMSTERDAM 217533.3371.432.570.292.29
PortugalLISBON 53281652.8357.143.251.002.25
Vietnam HNX 80331841.2554.553.641.552.09
UKLSE 39151138.4673.332.330.272.07
FrancePARIS 119360233750.4655.982.780.722.06
JapanTOKYO 56642941158451.9253.863.051.022.03
UAEUAE 66361454.5538.893.111.082.03
Vietnam HOSE 60727713245.6347.653.091.092.00
Saudi ArabiaTADAWUL 2641226746.2154.922.770.781.99
IsraelTASE 54528315751.9355.482.931.061.87
Greece ATHENS 122703357.3847.142.760.901.86
AustraliaASX 90747023851.8250.642.670.911.76
ChileBCS 2212954.5575.001.920.171.75
TaiwanGTSM 155266931843.1147.532.640.961.67
NorwayOSE 2911385847.4242.033.421.781.64
ItalyBORSA 124666533553.3750.382.470.871.60
TaiwanTWSE 171380939447.2348.702.410.821.60
SpainIBEX 3041487548.6850.682.591.001.59
USNYSE 48932664139454.4552.332.430.861.57
BangladeshDSE 75036515048.6741.102.761.201.56
GermanyXETRA 144480143455.6853.982.270.721.55
SingaporeSGX 152703246.0545.712.631.091.54
CanadaTSX 150279540252.9350.572.460.921.54
MexicoBMV 2031085153.2047.222.460.941.52
TurkeyBIST 199547.3755.561.670.221.44
PhilippinesPSE 3181174836.7941.032.551.141.41
Austria WIENERBORSE 87573065.5252.632.180.771.40
BrazilBOVESPA 2411845.8372.731.820.451.36
ArgentinaBUE 196231.5833.331.670.331.33
MalaysiaBURSA 3541587844.6349.372.461.181.28
UKLSE 3081159378751.7049.402.231.001.23
Hong KongHKEX 125441.6780.001.200.001.20
SwitzerlandSIX 54530516055.9652.461.740.551.19
BelgiumBRUSSELS 2401346355.8347.011.890.711.18
ChileBCS 79281535.4453.571.790.641.14
RussiaMICEX 1311584.6245.451.270.181.09
AustraliaASX 35231665.7169.571.260.221.04
QatarQE 114442138.6047.731.890.861.02
USWARRANTS 87387.5042.863.292.291.00
JapanFUKUOKA 1510466.6740.001.400.401.00
Vietnam HOSE 23131056.5276.921.000.080.92
PakistanKSE 2211550.0045.451.180.270.91
CanadaTSX 1710658.8260.001.000.200.80
IsraelTASE 2410841.6780.000.800.000.80
MexicoBMV 3415944.1260.001.070.270.80
Poland GPW 185327.7860.000.800.000.80
UAEUAE 197336.8442.861.430.710.71
ThailandSET 2812742.8658.331.080.420.67
MalaysiaBURSA 26181369.2372.220.830.220.61
JapanTOKYO 165331.2560.000.600.000.60
IndonesiaIDX 1910752.6370.000.800.200.60
SwitzerlandSIX 209645.0066.670.670.110.56
FOREXFOREX 1811661.1154.550.730.180.55
South KoreaKOSDAQ 3717945.9552.940.710.180.53
NetherlandsAMSTERDAM 2821517253.5547.681.551.050.50
USOTCBB 42150.0050.003.002.500.50
USPREFERRED 66235617153.7848.030.800.340.46
PhilippinesPSE 40201150.0055.000.700.250.45
TaiwanGTSM 2410541.6750.000.600.200.40
IndiaNSE 2913944.8369.230.620.230.38
SingaporeSGX 2913644.8346.150.380.000.38
NorwayOSE 2111552.3845.450.550.180.36
DenmarkCOPENHAGEN 172893051.7433.711.971.750.21
USFOREX 2611442.3136.360.360.180.18
BangladeshDSE 35191254.2963.160.320.260.05
ChinaSSE 186233.3333.330.330.330.00
SwedenSTOCKHOLM 2010650.0060.000.200.30-0.10
CanadaCSE 5624942.8637.505.135.42-0.29
JordanASE 2410441.6740.000.701.20-0.50
OmanMSM 21050.000.000.002.00-2.00
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

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.

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