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.
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.
Pattern Performance in Stock Exchanges since 1/1/2016
Stock Exchange 
Per Trade 
Total Net% Descending
The World 73038357011815348.9250.818.291.197.10
JapanNAGOYA 3816642.1137.506.130.505.63
CanadaCSE 65261041.5437.049.484.894.59
ArgentinaBUE 122513642.6269.234.770.604.17
PortugalLISBON 217633.3385.714.290.144.14
USOTC PINK 2876152764553.0942.246.763.423.34
IndiaBSE 67763111148645.9147.774.831.673.16
South KoreaKOSDAQ 3026141074646.6652.834.301.163.14
IndiaNSE 4178170981040.9047.404.581.453.13
Vietnam HNX 83341940.9655.884.561.443.12
PakistanKSE 74434417446.2450.584.571.513.06
Greece ATHENS 185427.7880.
Austria WIENERBORSE 175429.4180.
SwedenSTOCKHOLM 114555227548.2149.824.121.192.93
IndonesiaIDX 4291928744.7645.314.131.202.92
UAEUAE 71391854.9346.153.740.902.85
Poland GPW 44222511451.1350.443.921.112.81
ChinaSSE 167083043749.7052.653.700.972.73
ChinaSZSE 2890141572748.9651.383.981.272.71
EgyptEGX 2181074649.0842.994.021.382.64
USNASDAQ 52552515128048.1350.613.921.392.53
TurkeyBIST 3821497239.0148.323.210.682.52
South KoreaKRX 2298108855647.3951.063.360.852.51
DenmarkCOPENHAGEN 194421.05100.002.500.002.50
Hong KongHKEX 181283843646.2552.033.691.192.50
RussiaMICEX 2821246943.9755.653.360.932.44
SpainIBEX 257528.0071.432.860.432.43
USAMEX 84344822753.1450.673.841.482.36
BrazilBOVESPA 49822712145.9852.843.491.162.34
ThailandSET 59522011636.9752.733.331.002.33
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 56281650.0057.
CanadaTSX-V 2461145046.3443.865.373.162.21
Vietnam HOSE 65830014545.5948.333.231.052.19
FrancePARIS 126063734650.5654.322.780.762.02
IsraelTASE 56329016151.5155.523.001.031.97
Greece ATHENS 124713457.2647.892.940.971.97
JapanTOKYO 60493158168552.2153.362.961.001.96
Saudi ArabiaTADAWUL 2761256845.2954.402.710.771.94
UKLSE 40161140.0068.752.190.251.94
QatarQE 121452237.1948.892.690.841.84
ChileBCS 2212954.5575.001.920.171.75
SpainIBEX 3241538047.2252.292.690.961.73
ItalyBORSA 132270435553.2550.432.540.881.66
TaiwanGTSM 163471434243.7047.902.590.971.62
TaiwanTWSE 183386842147.3548.502.390.801.59
USNYSE 52162825148454.1852.512.410.851.56
GermanyXETRA 151183645155.5353.752.270.721.55
KuwaitKSE 55261647.2761.543.041.501.54
NorwayOSE 3051425946.5641.553.371.831.54
BangladeshDSE 79139116349.4341.692.671.171.50
AustraliaASX 95149224551.7449.802.511.021.50
CanadaTSX 159283641452.5149.522.390.911.48
TurkeyBIST 209545.0055.561.670.221.44
MexicoBMV 2201155452.2746.962.360.971.38
PhilippinesPSE 3491295236.9640.312.501.131.36
BrazilBOVESPA 2411845.8372.731.820.451.36
ArgentinaBUE 196231.5833.331.670.331.33
SingaporeSGX 157733346.5045.212.561.271.29
UKLSE 3226166683451.6450.
Austria WIENERBORSE 97653467.0152.311.980.771.22
MalaysiaBURSA 3671637944.4148.472.381.171.21
Hong KongHKEX 125441.6780.
ChileBCS 84271432.1451.851.810.671.15
SwitzerlandSIX 57831616354.6751.581.680.591.09
RussiaMICEX 1311584.6245.451.270.181.09
BelgiumBRUSSELS 2521376554.3747.451.770.701.07
AustraliaASX 35231665.7169.571.260.221.04
USWARRANTS 87387.5042.863.292.291.00
Vietnam HOSE 24131054.1776.921.000.080.92
JapanFUKUOKA 1611468.7536.361.270.360.91
PakistanKSE 2211550.0045.451.180.270.91
IndonesiaIDX 2011855.0072.731.000.180.82
Poland GPW 185327.7860.000.800.000.80
CanadaTSX 1710658.8260.
MexicoBMV 3515942.8660.
IsraelTASE 2510840.0080.000.800.000.80
UAEUAE 207335.0042.861.430.710.71
ThailandSET 2912741.3858.331.080.420.67
South KoreaKOSDAQ 37181048.6555.560.830.170.67
MalaysiaBURSA 27191470.3773.680.840.210.63
JapanTOKYO 175329.4160.000.600.000.60
SwitzerlandSIX 209645.0066.670.670.110.56
FOREXFOREX 1911657.8954.550.730.180.55
USPREFERRED 69037018053.6248.650.880.360.52
USOTCBB 42150.0050.003.002.500.50
NetherlandsAMSTERDAM 2961547352.0347.401.531.030.49
PhilippinesPSE 40201150.0055.000.700.250.45
TaiwanGTSM 2410541.6750.000.600.200.40
IndiaNSE 2913944.8369.230.620.230.38
SingaporeSGX 3013643.3346.150.380.000.38
NorwayOSE 2111552.3845.450.550.180.36
USFOREX 2711440.7436.360.360.180.18
BangladeshDSE 57271547.3755.560.410.260.15
DenmarkCOPENHAGEN 181923250.8334.781.841.720.12
JordanASE 2310443.4840.
ChinaSSE 186233.3333.330.330.330.00
SwedenSTOCKHOLM 2111652.3854.550.180.36-0.18
OmanMSM 21050.
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


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.