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 1/1/2017
Country 
Stock Exchange 
Website 
Patterns
Total
 
Confirmed
Total
 
Profitable
Signals
 
Confirmation
%
 
Profitable
Signal%
 
Per Trade 
Samples 
Profit% 
Loss% 
Total Net% Descending
ArgentinaBUE 159664641.5169.706.760.825.94
The World 109447533882721648.8050.956.521.235.29
JapanNAGOYA 68281341.1846.434.750.614.14
PortugalLISBON 217633.3385.714.290.144.14
ChinaSSE 2562135976053.0455.925.091.084.01
ChinaSZSE 41252149117952.1054.865.081.323.77
South KoreaKOSDAQ 43442070109847.6553.044.611.213.40
PakistanKSE 103746322444.6548.384.911.513.40
CanadaCSE 93431746.2439.537.864.653.21
IndiaBSE 96354361208745.2647.865.011.813.21
IndiaNSE 60332461119440.7948.524.551.513.04
Austria WIENERBORSE 175429.4180.003.200.203.00
Greece ATHENS 185427.7880.003.200.203.00
SwedenSTOCKHOLM 160578838049.1048.224.371.382.99
IsraelTASE 84141923749.8256.564.001.022.99
TurkeyBIST 65025813539.6952.333.760.792.97
BrazilBOVESPA 78537120447.2654.993.731.072.66
Hong KongHKEX 2875131864345.8448.794.081.462.62
EgyptEGX 3141606250.9638.754.231.622.61
IndonesiaIDX 68328512941.7345.263.951.362.59
USAMEX 123765432852.8750.153.951.392.56
USNASDAQ 76233657184548.0050.423.911.452.46
SpainIBEX 257528.0071.432.860.432.43
USOTC PINK 4399230696352.8841.405.723.302.42
UAEUAE 113632855.7544.443.441.162.29
ItalyBORSA 207535.0071.432.570.292.29
BelgiumBRUSSELS 217533.3371.432.570.292.29
GermanyXETRA 207535.0071.432.570.292.29
FrancePARIS 207535.0071.432.570.292.29
NetherlandsAMSTERDAM 217533.3371.432.570.292.29
Poland GPW 69735717251.2248.183.521.242.28
CanadaTSX-V 2781255344.9642.405.783.512.27
South KoreaKRX 3445162382547.1150.833.140.962.18
RussiaMICEX 3751759646.6754.863.070.902.18
Greece ATHENS 162974859.8849.483.311.272.04
JapanTOKYO 96754954264951.2053.472.990.992.00
DenmarkCOPENHAGEN 205525.00100.002.000.002.00
TaiwanGTSM 2443103551342.3749.573.001.041.96
TaiwanTWSE 2908131766645.2950.572.800.861.94
ChileBCS 127452535.4355.562.360.511.84
FrancePARIS 2014103154151.1952.472.660.871.79
BangladeshDSE 129863427448.8443.223.001.251.75
Vietnam HOSE 93141218044.2543.692.951.211.75
UKLSE 44191343.1868.422.110.371.74
SpainIBEX 44820410645.5451.962.600.901.71
CanadaTSX 2694139370451.7150.542.540.931.61
ThailandSET 96936516937.6746.302.771.181.59
KuwaitKSE 78341943.5955.883.531.941.59
USNYSE 76164002215152.5653.732.410.821.59
MalaysiaBURSA 58524212341.3750.832.621.041.58
Saudi ArabiaTADAWUL 48922312145.6054.262.390.821.57
QatarQE 181723539.7848.612.330.791.54
ChileBCS 2413954.1769.231.770.231.54
Vietnam HNX 125572745.6047.373.612.121.49
NorwayOSE 4442109747.3046.192.911.491.42
GermanyXETRA 2489142473257.2151.402.260.871.40
PhilippinesPSE 4941847537.2540.762.661.271.39
MexicoBMV 3471869253.6049.462.571.191.38
AustraliaASX 137971834152.0747.492.571.191.38
Austria WIENERBORSE 162884654.3252.272.320.941.38
PortugalLISBON 88411846.5943.902.561.201.37
ItalyBORSA 2050108354452.8350.232.270.921.35
ArgentinaBUE 216228.5733.331.670.331.33
DenmarkCOPENHAGEN 3131727154.9541.282.661.401.27
BrazilBOVESPA 2512948.0075.001.670.421.25
UKLSE 49692533127950.9850.492.251.001.24
Hong KongHKEX 125441.6780.001.200.001.20
NetherlandsAMSTERDAM 48426413854.5552.271.900.751.15
SwitzerlandSIX 92353125857.5348.591.800.701.10
TurkeyBIST 2211550.0045.451.360.271.09
FOREXFOREX 2113861.9061.541.230.151.08
AustraliaASX 35231665.7169.571.260.221.04
RussiaMICEX 1512680.0050.001.170.171.00
JapanFUKUOKA 2114666.6742.861.360.361.00
UAEUAE 239439.1344.441.670.671.00
BelgiumBRUSSELS 3832019352.4846.271.740.770.98
Vietnam HOSE 25131052.0076.921.000.080.92
PakistanKSE 2912541.3841.671.080.250.83
MexicoBMV 41171141.4664.711.060.240.82
ThailandSET 3312736.3658.331.080.420.67
CanadaTSX 2012860.0066.670.830.170.67
South KoreaKOSDAQ 39181046.1555.560.830.170.67
MalaysiaBURSA 29201468.9770.000.800.200.60
JapanTOKYO 175329.4160.000.600.000.60
SwitzerlandSIX 2110747.6270.000.700.100.60
USFOREX 3012540.0041.670.750.170.58
IndonesiaIDX 2614953.8564.290.860.290.57
Poland GPW 196331.5850.000.670.170.50
USOTCBB 42150.0050.003.002.500.50
PhilippinesPSE 41201148.7855.000.700.250.45
USPREFERRED 87544921251.3147.220.790.390.40
IndiaNSE 32151046.8866.670.600.200.40
TaiwanGTSM 2510540.0050.000.600.200.40
NorwayOSE 2413754.1753.850.540.150.38
SingaporeSGX 3013643.3346.150.380.000.38
JordanASE 2811539.2945.451.641.270.36
IsraelTASE 3014946.6764.290.640.290.36
SingaporeSGX 2801185442.1445.761.481.130.36
BangladeshDSE 69301743.4856.670.600.270.33
ChinaSSE 186233.3333.330.330.330.00
SwedenSTOCKHOLM 2111652.3854.550.180.36-0.18
OmanMSM 32066.670.000.001.00-1.00
USWARRANTS 54180.0025.004.005.00-1.00
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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