The Ultimate Guide to Inverted Hammer Candlestick Patterns

Last updated: January 4, 2024

Inverted Hammer Pattern

The inverted hammer pattern can indicate a bullish reversal after a bearish run, which appears just like an upside-down hammer:


This pattern shows that the market couldn't sustain the highs seen throughout the trading day with the stock closing near the session's open.


General Identification & Interpretation

Steve Nison is credited with bringing Japanese candlestick charting to the West. In his book "Japanese Candlestick Charting Techniques" he describes inverted hammer patterns with the following characteristics:

Typical characteristics

Examples of use as a trading indicator

More for beginners

Check out our quick start guide to candlestick charting for more information if you are new to candlestick charting!