What is the inverted hammer pattern?
The inverted hammer is a bullish candlestick pattern. A small body at the bottom with a long upper shadow, after a decline. Buyers pushed higher but have not yet managed to hold that ground.
How to spot an inverted hammer
- 1Confirm price has been falling into the candle.
- 2Look for a small body near the bottom of the range.
- 3The upper shadow should be at least twice the body; a higher close next confirms it.
How does the inverted hammer form?
After a decline, a bar rallies well above its open, gives all of it back, and closes near the low. This leaves a small body with a long upper shadow.
How do you confirm a inverted hammer?
It records an attempt, not a result: buyers pushed and could not hold it. The bar that follows is what says whether the attempt mattered.
When does the inverted hammer fail?
Taken alone it fails often, because the same shape appears when a decline is merely pausing before continuing.
No chart pattern works every time. The examples on this page were chosen because they show the pattern clearly, and in real markets patterns fail often.
Practice on real charts
3 real examples of the inverted hammer, cut off where the pattern completed. Make your call, then see what happened.
The shaded area is a inverted hammer. Where did price go next?
Inverted Hammer: common questions
Is the inverted hammer bullish or bearish?
The inverted hammer is bullish. It needs the next candle to confirm; alone it is only an attempt.
How do you spot an inverted hammer?
Confirm price has been falling into the candle. Look for a small body near the bottom of the range. The upper shadow should be at least twice the body; a higher close next confirms it.
What is the difference between the inverted hammer and the shooting star?
The inverted hammer: A small body at the bottom with a long upper shadow, after a decline. Buyers pushed higher but have not yet managed to hold that ground. The shooting star: A small body at the bottom with a long upper shadow, after a rally. The push higher was rejected outright.
How reliable is the inverted hammer?
No chart pattern works every time. Taken alone it fails often, because the same shape appears when a decline is merely pausing before continuing. That is why it helps to wait for confirmation and to practice on many real examples before relying on it.
How can I practice spotting the inverted hammer?
Use the real charts on this page: each one stops where the inverted hammer completed, so you can make a call and then see what happened. The free Chartle app mixes the inverted hammer in with 48 other patterns in short daily sessions.
Keep learning
- Chart pattern gameGuess where price goes next on real charts, all 49 patterns mixed.
- All 49 chart patternsEvery bullish and bearish pattern, with a printable cheat sheet.
- How to read candlestick chartsBodies, wicks and colors explained from the start.
- Cheat sheet PDFAll patterns on two printable pages.
