Lessons › Candlesticks › The inverted hammer
World 1 · Candlesticks · lesson 10 · level 2
The inverted hammer
An upside-down hammer after a fall shows buyers tried to push up, and the next candle tells us if they win.
What it is
After a fall, buyers tried to push up. A first sign of interest.
Your task in the app
Find the inverted hammer. Then decide: buy, sell, or wait?
How often it worked
| Market | Times found | Target first | Stop first | Went nowhere |
|---|---|---|---|---|
| India (NSE) | 99 | 38% | 58% | 4% |
| United States | 138 | 45% | 54% | 1% |
| Japan | 94 | 50% | 49% | 1% |
| Crypto | 840 | 32% | 58% | 10% |
| Forex | 168 | 41% | 50% | 9% |
| Commodities | 44 | 46% | 46% | 9% |
Counted on real past charts by the Trading Class research engine, 1,383 cases in all. Past odds, not a forecast.
Read more on the Inverted hammer pattern page.
Goal of this lesson: Recognize an inverted hammer after a decline and know how it gets confirmed.