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 1/1/2019
Country 
Stock Exchange 
Website 
Patterns
Total
 
Confirmed
Total
 
Profitable
Signals
 
Confirmation
%
 
Profitable
Signal%
 
Per Trade 
Samples 
Profit% 
Loss% 
Total Net% Descending
RussiaMICEX 45261457.7853.853.650.463.19
PortugalLISBON 259736.0077.783.330.223.11
Austria WIENERBORSE 185427.7880.003.200.203.00
Greece ATHENS 195426.3280.003.200.203.00
ItalyBORSA 217533.3371.432.570.292.29
FrancePARIS 217533.3371.432.570.292.29
GermanyXETRA 217533.3371.432.570.292.29
SpainIBEX 319629.0366.672.440.332.11
ArgentinaBUE 2811539.2945.452.000.271.73
NetherlandsAMSTERDAM 249537.5055.562.000.331.67
BelgiumBRUSSELS 249537.5055.562.000.331.67
UKLSE 60231538.3365.221.960.351.61
ChileBCS 31181458.0677.781.670.171.50
TurkeyBIST 2312652.1750.001.580.251.33
DenmarkCOPENHAGEN 258632.0075.001.380.131.25
MexicoBMV 66362454.5566.671.140.220.92
Hong KongHKEX 198642.1175.001.000.130.88
FOREXFOREX 32191059.3852.631.000.260.74
UAEUAE 3011536.6745.451.360.640.73
Vietnam HOSE 31161051.6162.500.810.130.69
South KoreaKOSDAQ 45201144.4455.000.850.200.65
ThailandSET 44181040.9155.560.890.280.61
PhilippinesPSE 51241447.0658.330.790.210.58
AustraliaASX 56361764.2947.220.860.330.53
BrazilBOVESPA 37191151.3557.891.050.530.53
USOTCBB 42150.0050.003.002.500.50
PakistanKSE 4721844.6838.100.760.290.48
MalaysiaBURSA 36241466.6758.330.670.210.46
JapanTOKYO 227331.8242.860.430.000.43
CanadaTSX 38191250.0063.160.630.210.42
USFOREX 51241147.0645.830.670.250.42
IndonesiaIDX 37191151.3557.890.680.320.37
IndiaNSE 43191344.1968.420.530.160.37
SingaporeSGX 4019947.5047.370.420.050.37
NorwayOSE 7373148.300.280.350.020.33
Poland GPW 3210431.2540.000.500.200.30
SwitzerlandSIX 2814750.0050.000.500.210.29
IsraelTASE 4018945.0050.000.560.280.28
PortugalLISBON 793245.575.560.270.010.25
TaiwanGTSM 3112538.7141.670.500.250.25
EgyptEGX 4003251.500.970.250.000.25
BangladeshDSE 108422138.8950.000.450.260.19
ThailandSET 11332140.950.220.120.010.11
KuwaitKSE 1621148.771.270.090.000.09
The World 136538145183749.151.250.070.010.06
UAEUAE 1491148.321.390.030.000.03
JapanFUKUOKA 263150.007.690.100.080.03
RussiaMICEX 5972242.710.780.010.000.01
TaiwanGTSM 25592144.700.090.010.000.01
JapanTOKYO 111372252.170.030.000.000.00
Vietnam HOSE 12601146.270.170.000.000.00
ItalyBORSA 26594255.020.140.000.000.00
ChinaSSE 40542150.390.050.000.000.00
IndiaBSE 115661144.490.020.000.000.00
AustraliaASX 18093151.460.110.000.000.00
PakistanKSE 10700046.360.000.000.000.00
Poland GPW 9070048.290.000.000.000.00
SwedenSTOCKHOLM 3220962.5045.000.350.350.00
SingaporeSGX 2590044.020.000.000.000.00
UKLSE 59170051.070.000.000.000.00
TaiwanTWSE 31662147.820.070.000.000.00
USOTC PINK 62600052.430.000.000.000.00
USNASDAQ 91970049.190.000.000.000.00
Vietnam HNX 1760041.480.000.000.000.00
USWARRANTS 1510047.020.000.000.000.00
JordanASE 190031.580.000.000.000.00
South KoreaKOSDAQ 48650045.710.000.000.000.00
South KoreaKRX 38000047.610.000.000.000.00
Saudi ArabiaTADAWUL 6740045.550.000.000.000.00
QatarQE 2360039.410.000.000.000.00
NorwayOSE 3717745.9541.180.410.410.00
MalaysiaBURSA 7830040.870.000.000.000.00
MexicoBMV 4850053.810.000.000.000.00
JapanNAGOYA 770040.260.000.000.000.00
IndiaNSE 66770041.140.000.000.000.00
IndonesiaIDX 10860038.310.000.000.000.00
Greece ATHENS 2830060.070.000.000.000.00
SpainIBEX 4890047.440.000.000.000.00
DenmarkCOPENHAGEN 3920049.740.000.000.000.00
ChileBCS 1720042.440.000.000.000.00
SwitzerlandSIX 12320054.950.000.000.000.00
ChinaSSE 2810435.7140.000.200.200.00
ChinaSZSE 63240048.690.000.000.000.00
CanadaCSE 2180042.660.000.000.000.00
CanadaTSX-V 4060041.130.000.000.000.00
CanadaTSX 29270052.480.000.000.000.00
BrazilBOVESPA 16460049.030.000.000.000.00
BelgiumBRUSSELS 3740054.280.000.000.000.00
Austria WIENERBORSE 1800057.220.000.000.000.00
ArgentinaBUE 4140052.420.000.000.000.00
BangladeshDSE 14610043.870.000.000.000.00
IsraelTASE 12181051.640.000.000.000.00
Hong KongHKEX 28811045.990.000.000.000.00
USPREFERRED 9673149.120.210.000.000.00
USNYSE 79451052.860.000.000.000.00
SwedenSTOCKHOLM 22262146.990.100.000.000.00
NetherlandsAMSTERDAM 6461055.420.000.000.000.00
FrancePARIS 24282151.770.080.000.000.00
GermanyXETRA 37891057.190.000.000.000.00
TurkeyBIST 8461045.630.000.000.000.00
USAMEX 16133055.240.000.000.01-0.01
PhilippinesPSE 5661041.340.000.000.02-0.02
OmanMSM 32066.670.000.001.00-1.00
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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