Beginner · Candlestick & chart patterns
Inverted Hammer
What it means
After a decline, buyers pushed price well above the open before sellers pulled it back near where it started, a first sign of buying interest that hints at a potential bottom.
At a glance
- Directional bias
- Bullish reversal
- Sessions to form
- 1 trading session
- Curriculum tier
- Beginner
- Pattern family
- inverted hammer
Practise this pattern in the Simulator
Reading a definition is not the same as spotting one. Run Inverted Hammer on real historical NSE daily bars in the Pattern Arena — the chart pauses and explains the formation each time it completes. Virtual capital only.
Practise Inverted Hammer in the SimulatorRelated patterns
Shooting Star
bearishBuyers pushed price sharply higher but sellers drove it back down to close near the open, rejecting the highs and hinting at a potential top after an advance.
Doji
indecisionPrice travelled through the session and closed right back where it opened, so neither buyers nor sellers won and the current trend has lost its conviction.
Hammer
bullishSellers forced price sharply lower and buyers bought all of it back before the close, rejecting the lower prices and hinting at a potential floor.
Bullish Engulfing
bullishBuyers have overwhelmed sellers, erasing the whole of the previous down session in one move and indicating a potential reversal upward.
Bearish Engulfing
bearishSellers have overwhelmed buyers, erasing the whole of the previous up session in one move and indicating a potential reversal downward.
Morning Star
bullishA strong down session is followed by a small-bodied pause and then a strong up session, showing selling pressure fading and buyers taking over at a potential bottom.
Educational reference only. This describes what traders conventionally read into the Inverted Hammer formation. It is not a trading signal, a prediction or investment advice, and no pattern is reliable on its own. Finance Onyx is a simulated educational platform: all practice uses virtual capital and no order is ever routed to a broker or an exchange.