Inverted Hammer Candlestick Top

When the low and the open are the same a bullish inverted hammer candlestick is formed and it is considered a stronger bullish sign than when the low and close.

Inverted hammer candlestick top.

In technical analysis the inverted hammer candlestick pattern is the reverse of the hammer pattern. This pattern usually takes shape at the bottom of the downtrend signaling a potential upside reversal in the price. The inverted hammer looks like an upside down version of the hammer candlestick pattern and when it appears in an uptrend is called a shooting star. The inverted hammer is a type of candlestick pattern found after a downtrend and is usually taken to be a trend reversal signal.

An inverted hammer candlestick pattern is typically found at the bottom of a down trending market. An inverted hammer candlestick is usually found at the top of up trends or near resistance levels. This usually means that the trend is about to reverse and either create a new downtrend temporary reversal or a minor pullback. The inverted hammer candlestick is a price formation that consists of a single candle with a long wick on its top.

Inverted hammer candlestick pattern. Also there is a long upper shadow which should be at least twice the length of the real body. With a long upper shadow it may be a warning of a potential change in price. The pattern has one candle.