Inverted Hammer
BullishReversal1 candleReliability:
Small body at the bottom, long upper shadow, after a downtrend — a bullish reversal that needs confirmation.
Description
Price tries to rally hard intraday but is pulled back to close near the open, leaving a long upper shadow, at the end of a decline.
Market psychology
Buyers begin testing strength; though pushed back, the attempt signals selling pressure is weakening.
How to trade
Wait for a bullish confirmation candle before buying; stop-loss below the inverted hammer's low.
Confirmation
The next bullish candle closes above the body; without confirmation the signal is weak.
Also known as: Inverted Hammer
Educational content only — not financial advice. Cryptorua reads public market data and never places orders.