🔨Understanding the Inverted Hammer Candlestick Pattern in Trading.

📌 What is the Inverted Hammer Pattern?

The Inverted Hammer is a single-candle bullish reversal pattern that appears after a downtrend.

It signals that buyers are starting to step in, and the downtrend might reverse upward.

🕯️ How the Candle Looks:

•

Small real body at the bottom (can be red or green).

•Long upper wick (shadow) – at least twice as long as the body.

•Little or no lower wick.

🔁 It looks like an upside-down hammer 🔨.

📉 ➡️ 📈 What It Means:

•During the day/session, buyers pushed the price up (long upper wick).

•But sellers pulled it back down, and it closed near the open.

•Still, the long upper wick shows buyers tried to fight back — a possible sign of reversal.

✅ Beginner Tips:

•Only trust this pattern after a downtrend.

•Color doesn’t matter much, but a green inverted hammer is slightly stronger.

🔘Look for confirmation:

•The next candle should be strong and green.

•It shows buyers are truly in control.

🔘Work better with:

•Support zones

•Oversold RSI

•High volume

📊 Simple Example:

•Imagine BTC has been falling for 7 days.

•On the 8th day, price opens at $60K, goes up to $62K, then falls and closes near $60K again.

•That forms an Inverted Hammer — price tried to rise but failed…

👀 Still, it’s a warning sign: selling may be weakening, and an upward reversal could happen.

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