Trading Glossary

Inverted Hammer

The inverted hammer is a type of candlestick pattern found after a downtrend and is usually taken to be a trend-reversal signal. 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.Inverted Hammer is a bullish candlesticks chart formation at the bottom of downtrends. Similar to the Shooting Star candlesticks formation.