Technical Definition
A bullish reversal pattern signaling early buyer interest after a decline, characterized by a small body and long upper wick.
After falling prices, buyers finally show up and try to push the market up — even if they are not yet fully in control. This pattern represents the first visible attempt by buyers to challenge selling pressure.
Buyers attempted a rally.
Market Psychology
Context
Market is in a downtrend Sellers are confident Buyers are hesitant or absent
Conflict
Buyers attempt a rally Price moves higher intraday Sellers respond and push price back
Stalemate
Price closes near the open Buyers do not yet win Sellers fail to dominate completely
Pattern Anatomy
Small Real Body
Located near the bottom of the candle range.
Long Upper Wick
Buyers were strong enough to test higher levels.
Little/No Lower Wick
Price did not fall significantly below the open.
Colour (Red or Green)
Not critical, but Green is slightly more bullish.
Pattern Rules
Appears after a decline
Reversal context.
Small real body near bottom
Defines the structure.
Upper wick is at least 2x body
Shows rejection of lows/attempt to rally.
Lower wick is very small or absent
No new lows.
Candle color is not critical
Shape matters more than close.
Signal Confirmation
- A bullish candle following the Inverted Hammer
- Price closing above the Inverted Hammer’s high
- Alignment with support zones