Inverted Hammer
A single candle with a small body and a long upper wick after a decline — a potential bullish reversal that needs next-day confirmation.
An inverted hammer forms at the bottom of a downtrend: price rallies hard intraday, leaving a long upper shadow at least twice the body, but closes back near the open. It shows buyers tried to take control even though sellers pushed price back.
On its own it's only a hint — the bullish read needs a higher close the next session. It's the bottoming-reversal cousin of the shooting star, which has the same shape but appears after an uptrend.
On StockSetups
StockSetups treats candles like the inverted hammer as confirmations layered onto its chart-pattern setups, tagging each signal's candle bias rather than trading the candle alone.
Related terms
See inverted hammer on tonight's board.
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