Inverted Hammer properties
BULLISH REVERSAL
1. Small real body
2. Real body is at the bottom end of the day’s range
3. Very small, or no lower shadow
4. The long upper shadow should be at least
twice the height of the real body
5. The colour of the real body is not important
6. Market is in a downtrend
Inverted Hammer the best forex trading strategy
The Inverted Hammer isn’t generally the strongest of reversal patterns. However,
it can be a good warning of an impending reversal because it’s a candle that
illustrates that the bulls aren’t completely dead and buried; they’re starting to make
noises, even if on this occasion it came to nothing because the bears stepped back
in to sell into the gains towards the end of the formation of the candle.