The Inverted Hammer is a single day pattern.

Inverted Hammer occurs when the price of the asset being traded  goes down significantly lower than the opening price and then bounces back on the same day to close near the opening price.

Inverted Hammer Candlestick has a small real body either bullish or bearish and a small or no lower shadow with a large upper shadow.  

Inverted Hammer occurs after a downtrend and is a bottom reversal pattern. Traders should wait for the next trading day session for confirmation  of the pattern i.e gap up or strong bullish candlestick. 




Psychology of Inverted Hammer pattern is that market is in a downtrend and On the market day open bears start selling resulting in price decline.During the closing day, bulls  take over control and push prices back up a little bit.  Next trading session gapping up and moving higher confirms the reversal. 

Inverted Hammer candlestick is considered as a bottom  reversal pattern, just like Hammer. 

Practice Inverted Hammer – Beginner

Practice Inverted Hammer – Intermediate

Practice Inverted Hammer – Expert