The image shows the Inverted Hammer candlestick pattern, commonly used in technical analysis of financial markets. Here’s a quick breakdown:
Key Characteristics of the Inverted Hammer:
Shape: Small real body near the low of the session with a long upper shadow.
Color: Can be green (bullish) or red (bearish), but color is less important than the shape.
Position: Typically appears after a downtrend, signaling a potential reversal to the upside.
Meaning:
The long upper shadow indicates that buyers tried to push prices higher.
The small body and close near the open suggest sellers resisted, but couldn't maintain control.
This pattern suggests possible buying pressure and a potential trend reversal, but confirmation with the next candle (e.g., a bullish candle) is important.
