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Inverted hammer candlestick pattern

Inverted hammer candlestick pattern is like the Shooting Star formation created when the open, low, and close are at the same price. There is a long upper shadow which is at least twice the length of the real body. The bullish inverted hammer candlestick is formed when low and open is the same and considered as a strong bullish sign. The inverted hammer gets the name from the shape and looks like an upside-down hammer. We should look for the long upper wick, short lower wick, and small body. When bullish traders start to gain confidence the inverted hammer is formed. The top part is formed when bull pushes the price up and the lower part is caused by bears to resist the higher prices. The bullish trend will be more strongly and the market will settle at a high price. These will look like an upside-down version of the hammer candlestick pattern and appears in an uptrend as a shooting star. Also called a chart pattern occurred at the end of a downtrend when pressure from buyers raises the price of an asset. The difference between an Inverted hammer and a shooting star is the nature of the trend in which they appear. If a pattern occurs in an upward trend indicating bearish reversal then is a shooting star. Appearing in a downward trend indicating bullish reversal called an inverted hammer. The pattern is formed of two candles as the first candle appears as a long line with a black body. Both red or green color and its upper shadow is two times the size of the real body

Use of inverted hammer candlestick in share market:-

These is also called a reversal candlestick pattern that appears at the bottom of a downtrend and signals a potential bullish reversal. The candlestick pattern will get its name from an inverted hammer in real life. It is a signal that can help you identify new trends. These will tell a trader that buyers are putting pressure on the market. He will warn that about the price reversal following a bearish trend. It’s important to remember that the these is not viewed in isolation. Trading the inverted hammer candle will involve a lot more instead of simply identifying the candle.