Wednesday, June 3

Candlestick Charts Inverted Hammer Pattern

Stocks and Shares - Stock Charts for Beginners - Inverted Hammer Pattern

Candlestick Charts Technical Analysis

In candlesticks charts the inverted hammer is a bullish single candle reversal pattern. The body can be red or green or black or white (green or white is considered more bullish). The upper shadow is at least two times the size of the body amd the trend needs to be heading down leading up to the inverted hammer.

Ideally there should be a gap down leading to the inverted hammer. Trading above the candlestick pattern is seen as confirmation. The inverted hammer has a lower probability than the shooting star or hanging man and needs good confirmation before a long trade can be entered.

If the price trades above the high of the inverted hammer then shorters will get stopped out, which will help the price move higher. There is however no guarantee, only a probability. The inverted hammer is considered less bullish than the hammer.

For beginners to online stock trading it is important to have an understanding of stock charts as many thousands of professionals use them and evenfor beginners to investing it is important to understand what the professionals may do next. Other candlestick charts see - Hammer Candlestick Chart- Hanging Man Candlestick Pattern
For further details about the Inverted hammer Candlestick pattern take a look at this excellent video


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