Inverted Hammer
A candlestick with a small body near the bottom of its range and a long upper wick, appearing after a decline.
How it is identified
Test: Upper Wick is at least twice the Body, Lower Wick is minimal, and the candle follows a decline
Unit
qualitative
In depth
The inverted hammer completes the set of four single-candle shapes whose names depend on prior context: hammer and hanging man share one geometry, inverted hammer and shooting star share the other. Practitioners read a long upper wick after a decline as a first attempt at buying, and conventionally require confirmation from the following period before acting. That requirement is an implicit admission that the candle alone is not sufficient. The entry records the definition without asserting what comes next.
Worked example
Open ₹470, high ₹492, low ₹468, close ₹472, following a fall from ₹534. The body is ₹2 and the upper wick ₹20. The identical candle after a rise would be a shooting star.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Inverted Hammer” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.