Single-candle pattern · bullish bias
Inverted Hammer candlestick pattern
An inverted hammer has a small body near the bottom of its range and a long upper wick, appearing after a decline. It shows buyers attempted a push higher, even though they could not hold all of it.
How to identify it
- A small body at or near the bottom of the candle.
- A long upper wick, around twice the body or more.
- Little or no lower wick.
- It appears after a decline.
Where it matters: Appears after a decline, near a low.
What it means
It is an early sign that buyers are testing higher prices after a fall. On its own it is weaker than a hammer because price closed well off its high.
What confirms it
A next candle that opens above the inverted hammer's body and closes higher.
What invalidates it
A close below the inverted hammer's low.
Common mistakes
- Confusing it with a shooting star, which has the same shape but appears after an advance.
- Treating it as a reversal without confirmation.
Frequently asked questions
Is an inverted hammer bullish?
It has a bullish bias after a decline, but it is a weak signal until confirmed.
Inverted hammer vs shooting star?
Same shape, opposite location. After a decline it is an inverted hammer; after an advance it is a shooting star.
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Educational content only, not financial advice. Chart patterns describe probabilities, not certainties, and every pattern can fail. See our disclaimer.