11 January 2021
Glossary
Inverse hammer
Inverse hammer

This type of figure is the opposite of the previous one. In this case, the long tail of the candlestick is directed downward.

This type of figure is the opposite of the previous one. In this case, the long tail of the candlestick is directed downward. The upper candlestick shadow should be absent or very small. The high of the candlestick is the top on the chart since the formation of the growing trend.
The characteristics that strengthen the formation are similar to those of the pin bar, except for one thing: the higher the opening price of the reversal candle compared to the closing price of the previous one, the stronger the pattern. The Inverted Hammer is the inverse of the Hanged Man pattern that occurs before a downtrend changes to an uptrend.
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