Poster by: Neha Gupta
The Inverted hammer candlestick pattern is a bullish trend reversal pattern, but many believe it is not as strong as a traditional Hammer. But I think before drawing any conclusions about the strength of an inverted hammer candlestick pattern, one should learn thoroughly to read these types of candles.
Formation of the Candle
Lets us have a look at the formation of the inverted hammer, in an inverted hammer candlestick pattern upper shadow is twice the length of the body and the candlestick will have very small or no lower shadow.