Reading the market regime before prices move

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After hours
Bullish signal ▲ · pattern 02

Inverted Hammer

Inverted Hammer

The Inverted Hammer (Inverted Hammer) is a single-candle pattern at the bottom of a downtrend. Small body in the lower part, a long upper shadow (2× the body or more), and almost no lower shadow. It is the mirror image of the Shooting Star, but in a downtrend context (a bottom). Don't confuse it with the Shooting Star, which appears at a top.

02
PATTERN ID
Signal Bullish ▲
Reliability ★★★☆☆
Win Rate 57%
Expected move +2–7%
Timeframe Daily / 4 hours
Confirmation Required

The short answer

What is an Inverted Hammer candle?
The Inverted Hammer (Inverted Hammer) is a single-candle pattern at the bottom of a downtrend. Small body in the lower part, a long upper shadow (2× the body or more), and almost no lower shadow. It is the mirror image of the Shooting Star, but in a downtrend context (a bottom).
How do you recognize an Inverted Hammer candle?
Appears after a clear downtrend (3 sessions or more), the upper shadow is at least 2–3× the body, and the body sits in the lower part of the candle's range.
Is the Inverted Hammer candle bullish or bearish?
It belongs to the bullish reversal patterns, is made of a single candle, and confirmation is required. Its reference success rate is 57%. Did it show up in the last session? The list of symbols that formed it on the latest completed daily candle is on this page, and it updates after every close. Which symbols formed it? →
Pattern illustration
A small body at the bottom + a long upper shadow that probes higher

How to identify the pattern

Step-by-step checks
  • Appears after a clear downtrend (3 sessions or more)
  • The upper shadow is at least 2–3× the body
  • The body is in the lower part of the candle's range
  • No lower shadow, or a very small one
  • Needs bullish confirmation in the next session; without it, disregard it

Trading psychology

The power struggle between buyers and sellers
Buyers try to push the price sharply higher (the upper shadow) but sellers turn them back, and the price returns near the open. Still, the attempt shows buyers are testing the level with real aggression. A bullish confirmation the next day firms up the signal.

Outlook and confirmation

Entry conditions and expected price move
Needs confirmation in the next session
Low confidence on its own: confirmation is needed. When confirmed, expect +2–7% over 5–10 days. Reliability rises noticeably when the pattern appears at a support level that has been touched several times.
Ideal setting for the pattern
At several support levels
Typical timeframe: daily / 4 hours

Where to find it on the platform

Inverted Hammer on the last completed daily candle

Candle of 13 Oct 2026 · list updated 13 Oct 2026 23:10 UTC
This pattern did not appear on any symbol in the platform's list on the 13 October 2026 candle.
Spotting a pattern is not a trade trigger.
  • Candlestick pattern detector
    The detector computes the success rate of the "Shooting Star" shape with no context, which is this pattern's own shape. The last-candle list separates the two by the direction of the previous 5 sessions.
  • Session summary · Today's lesson for members
    After each session closes, we classify the daily candle of SPY by its shape. When it takes this shape, its name appears there along with its body and shadow ratios.
  • Technical terminal for members
    Shows the daily-timeframe candles for any symbol on the platform's list. You identify the pattern by eye: the terminal does not name it.

How it is traded in practice

An inverted hammer at the bottom of a decline. The long upper shadow shows buyers pushed up, even though they were turned back by the end of the session. The pattern is weaker than the regular Hammer by nature, so confirmation matters more: no entry until a later close above the top of the upper shadow, which shows yesterday's push was not a whim. The stop goes below the pattern's low, and high volume on the confirmation candle matters more here than its own volume.

Common mistake

Mixing it up with the Shooting Star: same shape, opposite location. At the bottom of a decline it is a possible bullish reversal; at the top of a rise it is a bearish Shooting Star. Memorize the shape without the location and you trade both patterns backwards. Entering without confirmation is riskier here than with any other pattern, because unconfirmed versions fail more often than they work.