Bullish Inverted Hammer Japanese Candlestick Chart

Bullish Inverted Hammer

This pattern signals a trend...	How to identify...	Similar pattern(s)...
Reversal	Small real body formed near the bottom of the price range. The upper shadow is no more than two times as long as the body. The lower shadow is small or nonexistent.	The Inverted Hammer formation could become the middle day of the Bullish Morning Star formation.

Psychology...

The long upper shadow and small real body at the bottom of the trading range are cause for concern by the bears. They wonder if this is the end of the downtrend and take measures to protect their gains. If the next day opens above the body of the Inverted Hammer, then expectations could be for shorts to cover and propel a reversal rally.