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 221100.0050.008.000.507.50
ArgentinaBUE 152644542.1170.317.090.666.44
The World 105097516642656549.1951.396.711.195.53
PortugalLISBON 217633.3385.714.290.144.14
JapanNAGOYA 65281343.0846.434.750.614.14
ChinaSSE 2399124670151.9456.265.061.133.93
ChinaSZSE 39402012113251.0756.265.151.343.81
CanadaCSE 88401646.5939.028.154.663.49
South KoreaKOSDAQ 42442032107947.9353.054.621.203.42
PakistanKSE 99645321945.4848.344.851.483.37
IndiaBSE 92974268206545.9148.385.091.743.35
SwedenSTOCKHOLM 152876137249.8048.884.461.273.19
IndiaNSE 57592405117241.8048.694.601.473.14
Austria WIENERBORSE 175429.4180.003.200.203.00
Greece ATHENS 185427.7880.003.200.203.00
IsraelTASE 82341723450.6756.123.851.012.83
BrazilBOVESPA 74234819746.9056.613.851.022.83
USOTC PINK 4170220794053.3342.275.953.222.73
TurkeyBIST 63024913039.5252.213.410.762.66
Hong KongHKEX 2761127662346.2248.824.071.422.64
CanadaTSX-V 2641205145.4542.505.853.342.51
IndonesiaIDX 65427612542.2045.293.821.322.51
USAMEX 120063632353.0050.793.901.422.48
USNASDAQ 74133555181447.9651.033.891.422.47
SpainIBEX 257528.0071.432.860.432.43
UAEUAE 101572556.4443.863.351.002.35
Greece ATHENS 151924560.9348.913.341.012.33
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
ItalyBORSA 207535.0071.432.570.292.29
RussiaMICEX 3571709347.6254.713.110.872.24
South KoreaKRX 3303157980147.8150.733.130.962.18
EgyptEGX 2931545852.5637.663.821.672.15
JapanFUKUOKA 1911457.8936.362.450.362.09
JapanTOKYO 90994758258452.2954.313.000.922.08
Poland GPW 66534616552.0347.693.221.202.02
DenmarkCOPENHAGEN 205525.00100.002.000.002.00
ChileBCS 119412334.4556.102.510.512.00
TaiwanGTSM 2341100349942.8449.752.921.001.93
TaiwanTWSE 2749127464746.3450.782.750.831.92
FrancePARIS 192199852851.9552.912.650.821.83
Vietnam HOSE 86539017545.0944.872.961.131.82
BangladeshDSE 124460726148.7943.003.031.231.80
Saudi ArabiaTADAWUL 45320211544.5956.932.500.711.78
ThailandSET 93934216436.4247.952.851.111.74
SpainIBEX 44019610244.5552.042.590.881.71
PhilippinesPSE 4791777536.9542.372.761.061.70
Austria WIENERBORSE 150834555.3354.222.420.721.70
UKLSE 42171140.4864.712.060.411.65
Vietnam HNX 118562847.4650.003.682.071.61
MalaysiaBURSA 56423611841.8450.002.631.031.60
USNYSE 73803868210852.4154.502.340.761.58
QatarQE 175713540.5749.302.370.801.56
ChileBCS 2413954.1769.231.770.231.54
CanadaTSX 2560133868952.2751.492.360.851.51
AustraliaASX 131769633252.8547.702.531.071.47
MexicoBMV 3311768853.1750.002.531.091.45
PortugalLISBON 82391847.5646.152.691.261.44
DenmarkCOPENHAGEN 2971646955.2242.072.711.351.35
NorwayOSE 4221999147.1645.732.781.431.35
ArgentinaBUE 216228.5733.331.670.331.33
ItalyBORSA 1952104551953.5349.672.200.891.30
GermanyXETRA 2360136169757.8851.022.130.841.29
UKLSE 47912458125151.3750.832.230.961.27
KuwaitKSE 74351847.3051.433.342.091.26
BrazilBOVESPA 2512948.0075.001.670.421.25
Hong KongHKEX 125441.6780.001.200.001.20
SwitzerlandSIX 89051525357.8749.131.820.681.14
NetherlandsAMSTERDAM 47325713454.3352.141.910.771.14
TurkeyBIST 2211550.0045.451.360.271.09
AustraliaASX 35231665.7169.571.260.221.04
RussiaMICEX 1512680.0050.001.170.171.00
UAEUAE 239439.1344.441.670.671.00
Vietnam HOSE 24131054.1776.921.000.080.92
PakistanKSE 2711540.7445.451.180.270.91
BelgiumBRUSSELS 3711989253.3746.461.660.770.89
FOREXFOREX 2012760.0058.331.000.170.83
MexicoBMV 38171144.7464.711.060.240.82
ThailandSET 3312736.3658.331.080.420.67
CanadaTSX 2012860.0066.670.830.170.67
South KoreaKOSDAQ 39181046.1555.560.830.170.67
JapanTOKYO 175329.4160.000.600.000.60
MalaysiaBURSA 29201468.9770.000.800.200.60
SwitzerlandSIX 2110747.6270.000.700.100.60
USFOREX 3012540.0041.670.750.170.58
IndonesiaIDX 2514956.0064.290.860.290.57
Poland GPW 196331.5850.000.670.170.50
USOTCBB 42150.0050.003.002.500.50
USPREFERRED 87946022052.3347.830.790.330.45
PhilippinesPSE 40201150.0055.000.700.250.45
IsraelTASE 2912841.3866.670.670.250.42
TaiwanGTSM 2410541.6750.000.600.200.40
IndiaNSE 32151046.8866.670.600.200.40
NorwayOSE 2413754.1753.850.540.150.38
SingaporeSGX 3013643.3346.150.380.000.38
BangladeshDSE 66301745.4556.670.600.270.33
SingaporeSGX 2591145144.0244.741.251.120.13
ChinaSSE 186233.3333.330.330.330.00
SwedenSTOCKHOLM 2111652.3854.550.180.36-0.18
JordanASE 2610438.4640.001.201.40-0.20
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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