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Forex · candlestick pattern

Inverted hammer on GBP/USD

On GBP/USD the inverted hammer showed up 50 times. The target came first 32% of the time, the stop 58%, and 10% went nowhere within 12 candles.

Counted on GBP/USD: daily candles from January 2015 and hourly candles from September 2024.

By timeframe

TimeframeFoundTarget firstStop firstWent nowhere
Daily617%83%0%
Hourly4434%55%11%

GBP/USD against the rest

ChartsFoundTarget firstStop firstWent nowhere
GBP/USD5032%58%10%
All Forex charts55840%53%8%
Every market6,73437%55%8%

Year by year

YearFoundTarget firstStop first
2019333%67%
2024650%33%
20252030%60%
20261833%56%

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 GBP/USD

Inside bar · Stochastic bearish cross · Stochastic bullish cross · Spinning top · Doji · MACD bullish cross · MACD bearish cross · EMA 9/21 bearish cross · EMA 9/21 bullish cross · RSI oversold bounce · all of them

The inverted hammer elsewhere

EUR/JPY · EUR/USD · USD/CHF · GBP/JPY · USD/JPY · NZD/USD · EUR/GBP · AUD/USD · USD/CAD · GBP/INR · Dow Jones · S&P 500 · Nikkei 225 · Sony · Ethereum · Bitcoin

Questions

How often does the inverted hammer work on GBP/USD?

In 50 cases on GBP/USD, the target (1.5 × ATR) came before the stop (1 × ATR) 32% of the time and the stop came first 58%; 10% went nowhere within 12 candles.

What is the inverted hammer?

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