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 1/1/2014
Country 
Stock Exchange 
Website 
Patterns
Total
 
Confirmed
Total
 
Profitable
Signals
 
Confirmation
%
 
Profitable
Signal%
 
Per Trade 
Samples 
Profit% 
Loss% 
Total Net% Descending
The World 57151289901692250.7758.329.540.878.66
JapanNAGOYA 2915851.7253.337.600.207.40
ChinaSSE 93854236657.7867.537.150.866.30
USWARRANTS 189450.0044.448.562.446.11
EgyptEGX 135693551.1150.727.411.455.96
USOTC PINK 1806100650755.8750.258.162.395.77
ChinaSZSE 161891161556.3767.436.741.025.72
PakistanKSE 57628116548.7858.726.171.175.00
IndiaBSE 47562331134649.0157.745.991.264.73
PortugalLISBON 186633.33100.004.670.004.67
IndiaNSE 2754123473444.8459.435.510.944.57
South KoreaKOSDAQ 2241109565848.9160.045.340.824.52
ArgentinaBUE 68362552.9469.444.940.584.36
BrazilBOVESPA 41919712747.4963.824.400.633.76
Hong KongHKEX 145167136046.2453.654.901.143.76
Greece ATHENS 69362152.1758.334.440.893.56
NorwayOSE 2281116150.8852.594.781.323.46
IsraelTASE 41922314453.2264.574.220.813.41
IndonesiaIDX 3281448443.9058.334.270.943.33
CanadaTSX-V 168844050.0047.625.762.543.23
UKLSE 2810835.7180.003.400.203.20
Greece ATHENS 154426.67100.003.000.003.00
Austria WIENERBORSE 144428.57100.003.000.003.00
RussiaMICEX 166814748.8058.023.640.643.00
SwedenSTOCKHOLM 67036320754.4856.713.820.922.90
USAMEX 67734718351.2652.744.161.262.90
South KoreaKRX 160676645347.7059.143.590.692.90
TaiwanGTSM 129152831040.9058.713.520.672.85
UAEUAE 51291456.8648.283.520.692.83
Vietnam HOSE 3671669145.2354.823.811.012.80
TurkeyBIST 178647.0675.002.750.002.75
USNASDAQ 49102521144051.4157.053.680.942.73
JapanTOKYO 48432585156653.3860.583.410.682.73
BangladeshDSE 60731814552.3945.603.751.032.72
AustraliaASX 71435620850.0058.263.360.642.71
MexicoBMV 1871075857.2254.213.500.972.52
Hong KongHKEX 82225.00100.002.500.002.50
FrancePARIS 109757433952.3259.063.010.652.35
SpainIBEX 226527.2783.332.670.332.33
PhilippinesPSE 238894837.8253.333.030.742.29
TaiwanTWSE 155069938945.1055.652.940.662.28
Poland GPW 44223112452.4953.453.070.872.20
ItalyBORSA 176535.2983.332.330.172.17
BelgiumBRUSSELS 186533.3383.332.330.172.17
ArgentinaBUE 206230.0033.332.500.332.17
GermanyXETRA 176535.2983.332.330.172.17
FrancePARIS 176535.2983.332.330.172.17
NetherlandsAMSTERDAM 186533.3383.332.330.172.17
Saudi ArabiaTADAWUL 232986742.2468.372.700.562.14
CanadaTSX 151279445952.5157.812.840.692.14
MalaysiaBURSA 3081428746.1061.272.800.702.10
USNYSE 40262197133154.5760.582.650.652.01
SpainIBEX 2221025945.9557.842.540.601.94
UKLSE 2765138978250.2456.302.650.831.82
ItalyBORSA 114258633951.3157.852.570.761.81
NetherlandsAMSTERDAM 3021729456.9554.652.470.691.77
AustraliaASX 1611968.7581.821.910.181.73
JapanFUKUOKA 86375.0050.002.000.331.67
BelgiumBRUSSELS 2231126350.2256.252.160.511.65
GermanyXETRA 128873041056.9955.862.340.731.60
DenmarkCOPENHAGEN 167543.7571.431.710.141.57
ChileBCS 189750.0077.781.670.111.56
RussiaMICEX 1310676.9260.001.700.201.50
SingaporeSGX 191884546.0751.142.310.811.50
ChileBCS 51211241.1857.141.810.331.48
ThailandSET 5301989637.3648.482.451.031.42
Austria WIENERBORSE 62342154.8461.761.760.381.38
Vietnam HNX 79462258.2347.832.911.571.35
TurkeyBIST 3351346740.0050.002.160.831.34
IsraelTASE 143321.43100.001.330.001.33
BrazilBOVESPA 2714951.8564.291.640.431.21
FOREXFOREX 167543.7571.431.140.001.14
SwitzerlandSIX 50930615760.1251.311.700.581.12
QatarQE 96401941.6747.501.830.751.08
IndonesiaIDX 73242.8666.671.000.001.00
UAEUAE 2911337.9327.271.000.090.91
CanadaTSX 149564.2955.561.110.220.89
DenmarkCOPENHAGEN 169864050.8946.511.931.050.88
South KoreaKOSDAQ 187338.8942.860.860.000.86
MexicoBMV 1910652.6360.000.900.100.80
Vietnam HOSE 2313856.5261.540.850.080.77
MalaysiaBURSA 2012960.0075.000.830.080.75
SingaporeSGX 189650.0066.670.780.110.67
Poland GPW 93133.3333.330.670.000.67
PortugalLISBON 57321456.1443.751.841.220.63
PhilippinesPSE 2212654.5550.000.750.170.58
ChinaSSE 167343.7542.860.570.000.57
USPREFERRED 55931616856.5353.160.830.280.55
JapanTOKYO 176335.2950.000.500.000.50
USOTCBB 42150.0050.003.002.500.50
SwitzerlandSIX 147450.0057.140.570.140.43
USFOREX 2610538.4650.000.400.100.30
NorwayOSE 137253.8528.570.570.290.29
ThailandSET 115245.4540.001.000.800.20
PakistanKSE 1510466.6740.000.300.200.10
BangladeshDSE 1611768.7563.640.360.270.09
SwedenSTOCKHOLM 6000.000.000.000.000.00
IndiaNSE 39181046.1555.560.390.390.00
JordanASE 206230.0033.331.171.33-0.17
TaiwanGTSM 175129.4120.000.200.40-0.20
OmanMSM 220100.000.000.001.00-1.00
KuwaitKSE 176235.2933.331.832.83-1.00
CanadaCSE 95155.5620.002.009.00-7.00
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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