Bullish Inverted Hammer Pattern

The Inverted Hammer has drawn widespread attention from investors due to its distinctive formation. It possesses noticeable characteristics: a small real body, a longer upper shadow above the body, typically at least twice the length of the real body, and a relatively short or non-existent lower shadow, giving it the appearance of an inverted hammer.

The appearance of the Inverted Hammer suggests a potential market reversal, especially when it occurs at the bottom of a downtrend. In such cases, it may indicate an impending upward price movement. This is because the Inverted Hammer reflects the strength of buying interest in the market, indicating that despite a temporary decline in prices, buyers have successfully pushed the price back up.