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Candlestick pattern

Inverted hammer

Small body at the bottom, long upper shadow and very short lower shadow.

Example in context

At weekly support, the price attempts an intraday recovery and the next day exceeds the candle's high.

Prior contextHighlighted pattern · confirmation follows

Exact formation

Small body at the bottom, long upper shadow and very short lower shadow.

What is happening in the market

Buyers managed to boost the price, although they did not maintain all the advance; A first demand response appears.

Where it matters

It should appear after a fall. At a maximum, the same silhouette is interpreted as a shooting star.

How to confirm it

A subsequent bullish candle that closes above its maximum or shows buying continuity.

When it is invalidated

Loss of the pattern low without immediate recovery.

Common mistake

Enter before confirming: the low close shows that the offer was still present.