Inverted Hammer
A small body near the bottom with a long upper wick — buyers attempted to push higher during the session — a tentative bullish reversal signal after a downtrend.
The Inverted Hammer looks like an upside-down hammer: small body at the session low, long upper wick, little to no lower wick. It appears at the bottom of a downtrend.
Buyers pushed price significantly above the open, but sellers kept most of those gains from holding. The long upper wick still shows a shift in sentiment — buyers stepped in and tried. Whether they succeed depends on confirmation: a bullish candle closing above the Inverted Hammer's body the following session validates the signal.
Related Terms
Doji
A candle with virtually no real body — open and close are equal or near-equal — signalling market indecision.
BeginnerHammer
A single candle with a small body near the top and a long lower wick — buyers rejected a sharp intra-session sell-off — a bullish reversal signal.
BeginnerMorning Star
A three-candle bullish reversal: a long bearish candle, a small indecision candle gapping lower, then a large bullish candle recovering above the midpoint.
BeginnerShooting Star
A small body near the bottom with a long upper wick at the top of an uptrend — buyers were rejected at the high — a bearish reversal warning.
Beginner