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General TradingI

Inverted Hammer

A bullish reversal candlestick pattern with a small body at the bottom and a long upper wick, appearing at the end of a downtrend. It suggests potential buying pressure despite sellers initially pushing prices down.

Example

For example, after weeks of decline, a stock prints an inverted hammer candle with a long upper shadow at $42, and the next day opens higher at $44, confirming a bullish reversal.