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 65291319351629248.9650.968.831.177.66
JapanNAGOYA 3215646.8840.006.530.406.13
ArgentinaBUE 106433042.4566.674.870.584.29
PortugalLISBON 217633.3385.714.290.144.14
PakistanKSE 66431716947.7453.314.891.413.47
EgyptEGX 186934650.0049.464.621.203.42
USOTC PINK 2408129255853.9542.966.773.383.39
South KoreaKOSDAQ 2737128769347.1053.764.351.153.20
IndiaBSE 61592844136746.1848.074.831.653.18
IndiaNSE 3717152472541.0047.574.611.443.17
IndonesiaIDX 3831738145.1746.824.241.183.06
Greece ATHENS 185427.7880.003.200.203.00
Austria WIENERBORSE 175429.4180.003.200.203.00
USAMEX 64733616551.9349.114.681.692.99
Poland GPW 39920710452.1350.004.041.062.98
SwedenSTOCKHOLM 100749124548.7649.903.961.142.81
BrazilBOVESPA 45320810945.9252.403.680.942.74
Hong KongHKEX 155770138145.0254.353.821.152.67
Vietnam HNX 76331943.4257.583.791.182.61
USNASDAQ 46872223114547.6651.253.911.362.56
CanadaTSX-V 2331074745.9243.935.643.132.50
South KoreaKRX 197594447447.8050.213.370.872.50
DenmarkCOPENHAGEN 194421.05100.002.500.002.50
RussiaMICEX 2451056142.8658.103.300.862.45
SpainIBEX 257528.0071.432.860.432.43
ThailandSET 55220710837.5052.173.421.002.41
ChinaSSE 138868936149.6452.393.240.922.31
NetherlandsAMSTERDAM 217533.3371.432.570.292.29
ItalyBORSA 207535.0071.432.570.292.29
BelgiumBRUSSELS 217533.3371.432.570.292.29
FrancePARIS 207535.0071.432.570.292.29
GermanyXETRA 207535.0071.432.570.292.29
TurkeyBIST 3441315938.0845.042.890.712.18
ChinaSZSE 2467119062248.2452.273.391.242.15
UKLSE 38141036.8471.432.430.292.14
KuwaitKSE 45221548.8968.183.501.362.14
PortugalLISBON 52271551.9255.563.071.042.04
UAEUAE 58301151.7236.673.131.102.03
JapanTOKYO 53902793151651.8754.223.051.022.03
Vietnam HOSE 57026212445.9647.333.081.072.02
IsraelTASE 52227215152.1155.512.940.942.01
Saudi ArabiaTADAWUL 2541176446.0654.702.760.791.97
FrancePARIS 113556931450.1355.182.700.741.95
Greece ATHENS 114643156.1448.442.830.941.89
AustraliaASX 86544822251.7949.552.720.961.76
ChileBCS 2212954.5575.001.920.171.75
MexicoBMV 1911035153.9349.512.660.951.71
SpainIBEX 2891407248.4451.432.650.961.69
TaiwanGTSM 148864630743.4147.522.650.961.68
NorwayOSE 2741285147.0839.533.371.741.63
TaiwanTWSE 164477337747.0248.772.440.831.61
ItalyBORSA 122065032253.2849.542.480.881.60
BangladeshDSE 69834314249.1441.402.761.181.59
USNYSE 47392585135254.5752.282.440.871.56
PhilippinesPSE 3091134736.5741.592.621.121.50
CanadaTSX 144476438252.9849.932.400.931.47
SingaporeSGX 150693146.0044.932.591.141.45
GermanyXETRA 137576340355.7852.542.120.741.38
BrazilBOVESPA 2411845.8372.731.820.451.36
TurkeyBIST 199547.3755.561.560.221.33
ArgentinaBUE 196231.5833.331.670.331.33
ChileBCS 76261434.2153.851.880.651.23
UKLSE 2974152074451.1148.952.251.021.23
Hong KongHKEX 125441.6780.001.200.001.20
MalaysiaBURSA 3381537745.2750.332.391.191.20
SwitzerlandSIX 53129414955.3750.681.700.561.14
BelgiumBRUSSELS 2321275954.7446.461.870.721.14
RussiaMICEX 1311584.6245.451.270.181.09
AustraliaASX 33221566.6768.181.270.231.05
QatarQE 112422037.5047.621.900.881.02
USWARRANTS 87387.5042.863.292.291.00
Austria WIENERBORSE 76492464.4748.981.860.861.00
JapanFUKUOKA 1210483.3340.001.400.401.00
UAEUAE 197336.8442.861.710.711.00
MexicoBMV 3214943.7564.291.140.141.00
Vietnam HOSE 23131056.5276.921.000.080.92
PakistanKSE 2211550.0045.451.180.270.91
IsraelTASE 2410741.6770.000.800.000.80
CanadaTSX 1710658.8260.001.000.200.80
Poland GPW 185327.7860.000.800.000.80
ThailandSET 2712744.4458.331.080.420.67
MalaysiaBURSA 26181369.2372.220.830.220.61
JapanTOKYO 165331.2560.000.600.000.60
IndonesiaIDX 1810755.5670.000.800.200.60
SwitzerlandSIX 209645.0066.670.670.110.56
FOREXFOREX 1811661.1154.550.730.180.55
South KoreaKOSDAQ 3517948.5752.940.710.180.53
USOTCBB 42150.0050.003.002.500.50
IndiaNSE 2812942.8675.000.670.170.50
USPREFERRED 64733716652.0949.260.820.340.49
NetherlandsAMSTERDAM 2731497054.5846.981.541.060.48
PhilippinesPSE 38201152.6355.000.700.250.45
TaiwanGTSM 2410541.6750.000.600.200.40
SingaporeSGX 2813646.4346.150.380.000.38
NorwayOSE 1911557.8945.450.550.180.36
USFOREX 2611442.3136.360.360.180.18
DenmarkCOPENHAGEN 165852851.5232.941.751.620.13
BangladeshDSE 28161157.1468.750.310.250.06
ChinaSSE 186233.3333.330.330.330.00
SwedenSTOCKHOLM 1910652.6360.000.200.30-0.10
CanadaCSE 5321839.6238.105.335.57-0.24
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.

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.