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 1/1/2015
Stock Exchange 
Per Trade 
Total Net% Descending
The World 76232378362171749.6557.378.200.917.29
USOTC PINK 2670147073255.2149.668.262.375.89
JapanNAGOYA 4320946.5145.005.750.305.45
ArgentinaBUE 114574250.0073.685.630.495.14
ChinaSSE 146476848952.4663.675.850.835.02
USWARRANTS 2311547.8345.457.452.554.91
IndiaBSE 71013338190347.0256.996.031.274.76
ChinaSZSE 2596133985651.5863.935.621.054.56
EgyptEGX 1971035352.2851.465.781.254.52
South KoreaKOSDAQ 2982143988348.3261.285.340.824.51
IndiaNSE 41121755100042.6856.985.361.044.32
PakistanKSE 74634920246.7857.885.431.124.30
PortugalLISBON 217633.3385.714.290.144.14
UAEUAE 65361755.3847.224.470.613.86
Hong KongHKEX 198491650246.1754.804.621.113.51
BrazilBOVESPA 58826316544.7362.744.040.633.41
IndonesiaIDX 45320010144.1550.504.351.043.31
USNASDAQ 52312548146748.7957.484.151.023.13
SwedenSTOCKHOLM 103952029050.0555.774.030.973.06
USAMEX 86544523551.4552.814.261.223.04
Greece ATHENS 185427.7880.
Austria WIENERBORSE 175429.4180.
NorwayOSE 3051507749.5150.994.071.092.98
Vietnam HOSE 58326714645.8054.683.870.902.97
Poland GPW 53827415151.3054.713.790.852.93
IsraelTASE 62132720652.6663.003.640.772.87
RussiaMICEX 2401117146.2563.963.460.642.82
Greece ATHENS 111613354.9554.103.460.692.77
South KoreaKRX 2273109263848.0458.423.380.732.64
JapanTOKYO 67373571211453.0159.203.330.752.58
TaiwanGTSM 179275342642.0256.573.320.752.57
AustraliaASX 99551728451.9654.933.210.712.50
TurkeyBIST 114336.3675.002.500.002.50
DenmarkCOPENHAGEN 174423.53100.002.500.002.50
MexicoBMV 2551408254.9058.573.290.812.47
SpainIBEX 257528.0071.432.860.432.43
ItalyBORSA 207535.0071.432.570.292.29
NetherlandsAMSTERDAM 217533.3371.432.570.292.29
BelgiumBRUSSELS 217533.3371.432.570.292.29
GermanyXETRA 207535.0071.432.570.292.29
FrancePARIS 207535.0071.432.570.292.29
TaiwanTWSE 207493651045.1354.492.940.692.26
ThailandSET 71026513437.3250.573.180.942.24
Saudi ArabiaTADAWUL 35015610344.5766.032.760.522.24
UKLSE 3413938.2469.232.540.312.23
FrancePARIS 144175044052.0558.672.850.642.21
BangladeshDSE 86243919850.9345.
SpainIBEX 3211498646.4257.722.770.652.12
ChileBCS 82332040.2460.612.420.362.06
CanadaTSX 1902101457553.3656.652.730.722.01
MalaysiaBURSA 41818210343.5456.592.860.891.97
USNYSE 54632920171953.4558.872.480.621.86
PortugalLISBON 68321547.0646.882.911.061.84
PhilippinesPSE 3491296536.9650.392.630.811.82
CanadaTSX-V 2211064647.9643.404.742.951.78
UKLSE 36491829101850.1255.662.510.821.70
ItalyBORSA 147278144253.0656.592.420.751.67
JapanFUKUOKA 129575.0055.562.000.331.67
ChileBCS 2011855.0072.731.820.181.64
TurkeyBIST 4681809638.4653.332.380.761.62
Vietnam HNX 102512750.0052.943.101.551.55
GermanyXETRA 169795752956.3955.282.210.711.49
QatarQE 132532940.1554.722.150.661.49
DenmarkCOPENHAGEN 2141094950.9344.952.551.061.49
SingaporeSGX 2301035244.7850.492.310.861.45
NetherlandsAMSTERDAM 36620711256.5654.112.170.731.44
Austria WIENERBORSE 87462652.8756.521.800.411.39
BrazilBOVESPA 2111852.3872.731.820.451.36
ArgentinaBUE 196231.5833.331.670.331.33
Hong KongHKEX 114336.3675.
SwitzerlandSIX 68640021258.3153.001.770.521.25
AustraliaASX 28191367.8668.421.420.211.21
BelgiumBRUSSELS 2871557854.0150.321.750.581.17
IndonesiaIDX 147650.0085.711.140.001.14
RussiaMICEX 1311584.6245.451.270.181.09
MexicoBMV 2913944.8369.
UAEUAE 165231.2540.
CanadaTSX 158553.3362.501.250.251.00
Vietnam HOSE 23131056.5276.921.000.080.92
IsraelTASE 217533.3371.430.860.000.86
FOREXFOREX 169656.2566.670.890.110.78
Poland GPW 164225.0050.000.750.000.75
TaiwanGTSM 206330.0050.000.830.170.67
KuwaitKSE 46231250.0052.172.912.260.65
JapanTOKYO 165331.2560.000.600.000.60
PhilippinesPSE 2716959.2656.250.810.250.56
SwitzerlandSIX 199647.3766.670.670.110.56
USOTCBB 42150.0050.003.002.500.50
PakistanKSE 2010450.0040.000.800.300.50
South KoreaKOSDAQ 2814750.0050.000.710.210.50
IndiaNSE 2411845.8372.730.640.180.45
SingaporeSGX 2411645.8354.550.450.000.45
MalaysiaBURSA 23161169.5768.750.690.250.44
ThailandSET 2410541.6750.000.900.500.40
USPREFERRED 73038719953.0151.420.710.310.40
NorwayOSE 1811561.1145.450.550.180.36
USFOREX 2310443.4840.000.400.200.20
BangladeshDSE 21141066.6771.430.290.290.00
ChinaSSE 166237.5033.330.330.330.00
SwedenSTOCKHOLM 167443.7557.
JordanASE 2911437.9336.361.091.18-0.09
OmanMSM 32066.670.000.001.00-1.00
CanadaCSE 3214443.7528.573.645.36-1.71
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.