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Japanese stock market · candlestick pattern

Inverted hammer on Nikkei 225

On Nikkei 225 the inverted hammer showed up 30 times. The target came first 50% of the time, the stop 50%, and 0% went nowhere within 12 candles.

Counted on Nikkei 225: daily candles from January 2015 and hourly candles from September 2024.

By timeframe

TimeframeFoundTarget firstStop firstWent nowhere
Daily1155%45%0%
Hourly1947%53%0%

Nikkei 225 against the rest

ChartsFoundTarget firstStop firstWent nowhere
Nikkei 2253050%50%0%
All Japanese stock market charts9450%49%1%
Every market6,73437%55%8%

Year by year

YearFoundTarget firstStop first
2024367%33%
2025956%44%
20261127%73%

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 Nikkei 225

Inside bar · Gap up · Stochastic bearish cross · Gap down · Stochastic bullish cross · Spinning top · MACD bearish cross · EMA 9/21 bullish cross · EMA 9/21 bearish cross · RSI overbought drop · all of them

The inverted hammer elsewhere

Sony · Toyota · Dow Jones · S&P 500 · GBP/USD · EUR/JPY · Ethereum · Bitcoin

Questions

How often does the inverted hammer work on Nikkei 225?

In 30 cases on Nikkei 225, the target (1.5 × ATR) came before the stop (1 × ATR) 50% of the time and the stop came first 50%; 0% went nowhere within 12 candles.

What is the inverted hammer?

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