Last Updated on: 15th February 2021, 06:39 pm
In the study of the candlestick trading strategy, an inverted hammer is a bullish reversal pattern that’s formed after a bearish trend in the market. It’s exactly opposite to “Hammer” as it has a long upper shadow (wick), small lower body, and little or no lower shadow (wick), so it resembles an “Inverted Hammer”. Besides that, it exhibits the weakness in a selling trend and signifies a potential buying trend in the market.
Vincent Nyagaka is a Professional Trader, Analyst & Author. He has been actively engaged in market analysis for the past 7 years. He has a monthly readership of 100,000+ traders and has taught over 1,000 students since 2014. Vincent is also an experienced instructor and public speaker. Check out Vincent’s Professional Trading Course here.