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Inverted Hammer pattern

An Inverted Hammer is a single-candle bullish reversal with a small body near the low and a long upper wick, appearing after a downtrend. It shows buyers attempted to push price up, hinting that selling pressure is fading.

Historical performance

Inverted Hammer historical win-rate

Follow-through rate — how often price moved in the predicted direction within each window — across 633 historical occurrences on 20+ exchanges. Computed June 2026.

Inverted Hammer: historical follow-through win-rate by horizon (n = 633).
HorizonHistorical win-rate
1 hour38%
4 hours33%
24 hours33%
7 days33%
Sample size633 occurrences

This is a historical follow-through rate, not a trade simulation, and does not guarantee future results. See methodology →

How the inverted hammer pattern forms

After a decline, price rallies within the candle then settles back near the open, leaving a long upper shadow. It shares its shape with the shooting star but appears at the bottom of a move.

How traders use the inverted hammer pattern

Traders look for a confirming green candle or a close above the inverted hammer’s high before going long, with a stop below the low.

CryptoPatterns’ scanner detects the inverted hammer live across 20+ exchanges and every timeframe, tagging each occurrence with the historical win-rate above so you can weigh it in context. See how the scanner works →

FAQ

Inverted Hammer — common questions

Is an inverted hammer a buy signal?

It is a potential bullish reversal that usually needs confirmation — a green candle or a close above its high — before traders act. It is strongest at support after a clear downtrend.

What is the difference between an inverted hammer and a shooting star?

Shape is the same; context differs. An inverted hammer forms after a downtrend (bullish), a shooting star after an uptrend (bearish).

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