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
USWARRANTS 177441.1857.1417.430.7116.71
ArgentinaBUE 204926245.1067.397.070.756.32
The World 122120605633151649.6651.976.471.205.27
ChinaSZSE 46502470143453.1258.065.241.263.99
ChinaSSE 2853152989153.5958.275.021.063.96
PakistanKSE 110550525445.7050.305.311.433.89
PortugalLISBON 228736.3687.503.750.133.63
IndiaBSE 104654780234045.7148.915.361.743.61
TurkeyBIST 70129015641.3753.794.400.823.58
South KoreaKOSDAQ 46272240120248.4153.664.641.173.47
IndiaNSE 66542768137441.6349.604.861.463.40
IndonesiaIDX 79833516341.9848.664.701.343.36
CanadaCSE 106471844.3438.307.894.723.17
JapanNAGOYA 72321344.4440.634.221.063.16
BrazilBOVESPA 94242723645.5455.014.141.003.14
IsraelTASE 97349828251.1856.634.171.033.13
EgyptEGX 3481837452.5940.444.691.573.12
USOTC PINK 51862719117153.1242.506.263.243.02
Austria WIENERBORSE 175429.4180.003.200.203.00
Greece ATHENS 185427.7880.003.200.203.00
USNASDAQ 81223962202948.7951.204.371.462.91
SwedenSTOCKHOLM 180589144249.3649.614.321.442.88
Vietnam HOSE 103448123146.5248.023.961.122.84
Poland GPW 79040419551.1448.274.131.302.83
Greece ATHENS 1911196562.3054.623.941.182.76
South KoreaKRX 3578169186847.3451.243.690.962.73
UAEUAE 139773855.4049.353.741.102.64
USAMEX 134973737154.6350.343.941.392.56
QatarQE 213864540.3852.333.260.722.53
NorwayOSE 51324312247.3750.213.901.382.52
SpainIBEX 257528.0071.432.860.432.43
Hong KongHKEX 3133145071146.3149.003.801.422.38
Saudi ArabiaTADAWUL 55125014045.3756.003.120.782.34
TaiwanGTSM 2685113157042.1250.403.361.032.33
SpainIBEX 48723312347.8452.793.260.962.30
ItalyBORSA 207535.0071.432.570.292.29
GermanyXETRA 207535.0071.432.570.292.29
FrancePARIS 207535.0071.432.570.292.29
ThailandSET 109342519638.9846.013.381.172.21
CanadaTSX-V 3151516347.9441.725.683.542.14
JapanTOKYO 106735549299651.9953.993.080.962.12
AustraliaASX 156381539752.1448.713.251.142.10
TaiwanTWSE 3213147977246.0352.202.930.842.08
ChileBCS 136502736.7654.002.560.542.02
NetherlandsAMSTERDAM 228536.3662.502.250.252.00
BelgiumBRUSSELS 228536.3662.502.250.252.00
RussiaMICEX 45321111446.5854.032.830.871.96
CanadaTSX 2919153378852.5251.402.790.911.88
PhilippinesPSE 5292038938.3743.843.101.231.87
FrancePARIS 2235117562752.6253.322.680.841.85
MalaysiaBURSA 69328814841.5651.392.971.171.80
BangladeshDSE 136866228748.3943.353.001.241.75
UKLSE 46191341.3068.422.110.371.74
ItalyBORSA 2350123865252.9852.372.620.891.73
KuwaitKSE 92361939.1352.783.752.031.72
USNYSE 79794239228253.1653.802.490.811.68
DenmarkCOPENHAGEN 216528.5783.331.670.001.67
ArgentinaBUE 238334.7837.502.000.381.63
ChileBCS 30171356.6776.471.760.181.59
UKLSE 55832860150151.4852.232.480.921.56
NetherlandsAMSTERDAM 54530717356.3356.352.180.691.49
MexicoBMV 42523011654.1250.432.551.171.39
GermanyXETRA 2983174290358.5051.752.210.881.33
SwitzerlandSIX 104360730558.2050.251.990.671.31
RussiaMICEX 2614853.8557.141.430.141.29
Vietnam HNX 127602847.2446.673.352.081.27
BrazilBOVESPA 2512948.0075.001.670.421.25
Austria WIENERBORSE 94552758.5149.092.891.651.24
DenmarkCOPENHAGEN 3621958253.8742.052.551.361.19
BelgiumBRUSSELS 42222010552.1347.731.890.751.14
TurkeyBIST 2211550.0045.451.360.271.09
PortugalLISBON 105492146.6742.862.291.271.02
FOREXFOREX 2214863.6457.141.140.210.93
AustraliaASX 37251667.5764.001.160.240.92
MexicoBMV 54292053.7068.971.140.240.90
Hong KongHKEX 136446.1566.671.000.170.83
UAEUAE 2410441.6740.001.500.700.80
Vietnam HOSE 26141053.8571.430.930.140.79
PakistanKSE 3616744.4443.750.940.190.75
South KoreaKOSDAQ 39181046.1555.560.830.170.67
ThailandSET 3613736.1153.851.000.380.62
CanadaTSX 2113961.9069.230.770.150.62
USPREFERRED 97651325652.5649.901.040.430.61
MalaysiaBURSA 29201468.9770.000.800.200.60
Poland GPW 247429.1757.140.710.140.57
SwitzerlandSIX 2211750.0063.640.640.090.55
SingaporeSGX 3061346243.7946.271.651.100.54
PhilippinesPSE 43211248.8457.140.760.240.52
JapanTOKYO 186333.3350.000.500.000.50
USOTCBB 42150.0050.003.002.500.50
USFOREX 3315745.4546.670.670.200.47
TaiwanGTSM 2710537.0450.000.600.200.40
IndonesiaIDX 3016953.3356.250.750.380.38
SingaporeSGX 3215746.8846.670.400.070.33
IndiaNSE 37181248.6566.670.500.170.33
BangladeshDSE 76331843.4254.550.550.270.27
IsraelTASE 3115848.3953.330.530.270.27
JapanFUKUOKA 2113661.9046.151.381.310.08
NorwayOSE 3216750.0043.750.440.380.06
ChinaSSE 208340.0037.500.250.250.00
SwedenSTOCKHOLM 2313656.5246.150.150.38-0.23
OmanMSM 32066.670.000.001.00-1.00
JordanASE 268230.7725.000.501.75-1.25
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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