The Inverted Hammer candlestick formation occurs mainly at the bottom of downtrends and can act as a warning of a potential trend reversal.
After a long downtrend, the formation of an Inverted Hammer is bullish because prices hesitated to move downwards.
Sellers pushed prices back to where they were at the open, but increasing prices shows that bulls are testing the power of the bears.
**This is not a signal and should be used for educational purposes only.**
After a long downtrend, the formation of an Inverted Hammer is bullish because prices hesitated to move downwards.
Sellers pushed prices back to where they were at the open, but increasing prices shows that bulls are testing the power of the bears.
**This is not a signal and should be used for educational purposes only.**