Trading Class

Markets › Bitcoin › Inverted hammer

Crypto · candlestick pattern

Inverted hammer on Bitcoin

On Bitcoin the inverted hammer showed up 155 times. The target came first 26% of the time, the stop 63%, and 11% went nowhere within 12 candles.

Counted on Bitcoin (BTC/USDT): daily candles from January 2021, 4-hour candles from January 2021 and hourly candles from January 2021.

By timeframe

TimeframeFoundTarget firstStop firstWent nowhere
Daily333%0%67%
4-hour2218%68%14%
Hourly13028%63%9%

Bitcoin against the rest

ChartsFoundTarget firstStop firstWent nowhere
Bitcoin15526%63%11%
All Crypto charts4,29734%56%9%
Every market6,73437%55%8%

Year by year

YearFoundTarget firstStop first
20211741%53%
20223123%58%
20231735%41%
20242938%62%
20253619%69%
20262512%80%

The last 8 times

Counted by the Trading Class research engine on real past candles: entry at the signal candle's close, target 1.5 × ATR(14), stop 1 × ATR(14), 12 candles to decide, a candle that touches both counts as the stop. How we count. Past data, not a forecast and not advice.

What the inverted hammer is

After a fall, buyers tried to push up. A first sign of interest.

Imagine a kid who keeps losing a game and finally jumps as high as they can. They land back down, but everyone noticed the jump. An inverted hammer is that jump: after a fall, buyers pushed price up high during the candle, even though it slid back before the close.

The full inverted hammer lesson, video and quiz ›

Other patterns on Bitcoin

Inside bar · Stochastic bearish cross · Spinning top · Stochastic bullish cross · Volume profile bounce · Doji · Volume profile rejection · MACD bearish cross · MACD bullish cross · EMA 9/21 bearish cross · all of them

The inverted hammer elsewhere

Ethereum · Solana · Litecoin · NEAR Protocol · Chainlink · Uniswap · BNB · Cardano · Polkadot · Aave · Dow Jones · S&P 500 · Nikkei 225 · Sony · GBP/USD · EUR/JPY

Questions

How often does the inverted hammer work on Bitcoin?

In 155 cases on Bitcoin, the target (1.5 × ATR) came before the stop (1 × ATR) 26% of the time and the stop came first 63%; 11% went nowhere within 12 candles.

What is the inverted hammer?

After a fall, buyers tried to push up. A first sign of interest.