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2021-04-21 07:02:43 WHAT IS AN INVERTED HAMMER?

The inverted hammer candle has a small real body, an extended upper wick and little or no lower wick. It appears at the bottom of a downtrend and signals a potential bullish reversal. The extended upper wick suggests that the bulls are looking to drive price upwards. Validation of this move will be confirmed or rejected through subsequent price action.

How to spot an Inverted Hammer candlestick pattern:

Candle with a small real body, a long upper wick and little to no lower wick

Appears at the bottom of a downtrend

Stronger signals are produced when the candle appears near key levels of support

What does it indicate:

Trend reversal to the upside (bullish reversal)

Rejection of lower prices (sometimes at a key level)

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