Inverted Hammer

The Inverted Hammer pattern consists of two candles. The first candle appears as a long line and has a black body. Spinning Tops, even with black bodies, cannot appear on the first line.

The second candle can be a Black or White Spinning Top, or a High Wave, and can appear as either a long or short line. The lower shadow must not be present, or if it is, it must be shorter than the body. The upper shadow must be at least 2.5 times longer than the body.

The pattern appears in a downtrend, predicting its reversal. It must be confirmed in the form of a breakout of a nearby resistance zone or trend line.

As always, the pattern requires confirmation on subsequent candles, which means that the nearest resistance zone or trend line must be suppressed. The market context in which the pattern appears is crucial.

The pattern can occur within the three-line pattern Morning Star, being a confirmation of it.