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Bullish Inverted Hammer

Daily Charts:   2 found in last 10 days.   Updated Wed Jul 28 18:16:42 2010 CST . Click here to see them.

Weekly Charts:   7 found in last 10 weeks. Click here to see them.

Bullish Inverted Hammer

This pattern signals a trend...
How to identify...
Similar pattern(s)...
Reversal
  1. Small real body formed near the bottom of the price range.
  2. The upper shadow is no more than two times as long as the body.
  3. The lower shadow is small or nonexistent.

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.





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