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
USWARRANTS 32166.6750.008.000.507.50
The World 79641389071975848.9250.717.811.196.62
ArgentinaBUE 127493540.1668.635.980.455.53
JapanNAGOYA 4617636.9635.295.880.765.12
PortugalLISBON 217633.3385.714.290.144.14
CanadaCSE 82381547.5638.468.464.593.87
PakistanKSE 77436018546.5151.394.861.463.39
South KoreaKOSDAQ 3348156983346.9552.994.361.163.20
IndiaBSE 72483295156045.4747.334.751.693.06
IndiaNSE 4566185487540.6047.204.501.503.00
Austria WIENERBORSE 175429.4180.003.200.203.00
Greece ATHENS 185427.7880.003.200.203.00
USOTC PINK 3224168470052.4541.406.173.442.73
IndonesiaIDX 4762089243.7044.233.891.242.65
ChinaSSE 190392348848.5052.873.560.942.63
ChinaSZSE 3220154579047.9851.133.871.272.60
SwedenSTOCKHOLM 125961430148.7749.023.791.212.58
USAMEX 91348825253.4551.643.971.422.55
UAEUAE 79462158.2345.653.430.912.52
TurkeyBIST 4171627738.8547.533.210.712.50
Poland GPW 47624912652.5250.403.651.162.49
USNASDAQ 57642749138648.1649.933.861.402.45
BrazilBOVESPA 53124413346.5253.853.511.072.44
SpainIBEX 257528.0071.432.860.432.43
Hong KongHKEX 199391046245.6650.773.651.282.37
South KoreaKRX 2566123063447.9751.503.210.852.36
RussiaMICEX 3141407644.5954.293.210.892.32
EgyptEGX 2301134649.1340.713.731.412.32
Vietnam HNX 83361843.3750.004.141.832.31
BelgiumBRUSSELS 217533.3371.432.570.292.29
GermanyXETRA 207535.0071.432.570.292.29
FrancePARIS 207535.0071.432.570.292.29
ItalyBORSA 207535.0071.432.570.292.29
NetherlandsAMSTERDAM 217533.3371.432.570.292.29
Greece ATHENS 133794159.4051.903.000.822.18
IsraelTASE 61331718051.7156.783.120.992.13
ThailandSET 64824012237.0450.833.161.042.12
PortugalLISBON 56291651.7955.173.141.032.10
Vietnam HOSE 70232415946.1549.073.071.032.04
DenmarkCOPENHAGEN 205525.00100.002.000.002.00
JapanTOKYO 64993393181852.2153.582.981.011.97
CanadaTSX-V 2441074743.8543.935.133.201.93
QatarQE 133532639.8549.062.680.791.89
FrancePARIS 139071338651.4453.992.610.781.83
Saudi ArabiaTADAWUL 2921317044.8653.442.600.771.82
SpainIBEX 3531718748.4450.882.690.921.77
KuwaitKSE 61281645.9057.143.321.571.75
PhilippinesPSE 3871506238.7641.332.801.091.71
UKLSE 42171140.4864.712.060.411.65
BangladeshDSE 89843218348.1142.362.781.161.62
USNYSE 56503027163053.5953.832.430.831.60
TaiwanGTSM 174775836043.3947.492.560.981.59
TaiwanTWSE 199795046547.5748.952.390.811.58
ItalyBORSA 142978239154.7250.002.380.841.54
ChileBCS 2313956.5269.231.770.231.54
CanadaTSX 176293446353.0149.572.360.911.45
AustraliaASX 103253526151.8448.792.481.051.43
GermanyXETRA 174899853357.3253.192.200.781.42
SwitzerlandSIX 64735918755.4952.091.970.571.40
MexicoBMV 2341225652.1445.902.320.981.34
ArgentinaBUE 216228.5733.331.670.331.33
Austria WIENERBORSE 115764066.0952.632.120.821.30
MalaysiaBURSA 3991738443.3648.552.371.121.25
ChileBCS 96321733.3353.131.840.591.25
BrazilBOVESPA 2512948.0075.001.670.421.25
Hong KongHKEX 125441.6780.001.200.001.20
NorwayOSE 3231476145.8241.222.751.551.20
UKLSE 3529184992352.4249.892.191.001.19
UAEUAE 229440.9144.441.780.671.11
RussiaMICEX 1411578.5745.451.270.181.09
TurkeyBIST 2211550.0045.451.360.271.09
AustraliaASX 35231665.7169.571.260.221.04
FOREXFOREX 2012760.0058.331.170.171.00
BelgiumBRUSSELS 2751446652.3645.831.700.720.98
Vietnam HOSE 24131054.1776.921.000.080.92
JapanFUKUOKA 1711464.7136.361.270.360.91
PakistanKSE 2211550.0045.451.180.270.91
MexicoBMV 37161043.2462.501.060.250.81
USFOREX 2912541.3841.670.830.170.67
ThailandSET 3312736.3658.331.080.420.67
CanadaTSX 1912863.1666.670.830.170.67
South KoreaKOSDAQ 39181046.1555.560.830.170.67
NetherlandsAMSTERDAM 3331768852.8550.001.580.920.66
IndonesiaIDX 2314960.8764.290.930.290.64
SwitzerlandSIX 2110747.6270.000.700.100.60
MalaysiaBURSA 29201468.9770.000.800.200.60
JapanTOKYO 175329.4160.000.600.000.60
USPREFERRED 71837818852.6549.740.900.340.56
Poland GPW 196331.5850.000.670.170.50
USOTCBB 42150.0050.003.002.500.50
DenmarkCOPENHAGEN 2001073853.5035.512.061.600.46
PhilippinesPSE 40201150.0055.000.700.250.45
BangladeshDSE 60281646.6757.140.680.250.43
IsraelTASE 2712844.4466.670.670.250.42
TaiwanGTSM 2410541.6750.000.600.200.40
IndiaNSE 32151046.8866.670.600.200.40
SingaporeSGX 3013643.3346.150.380.000.38
NorwayOSE 2312652.1750.000.500.170.33
SingaporeSGX 167803547.9043.751.341.260.08
ChinaSSE 186233.3333.330.330.330.00
JordanASE 2310443.4840.001.201.200.00
SwedenSTOCKHOLM 2111652.3854.550.180.36-0.18
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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