technical

Inverted Hammer

An inverted hammer is a single-candle candlestick pattern characterized by a small real body near the session's low, a long upper wick, and little or no lower wick, typically forming after a downtrend and viewed as a potential trend-turn signal.

Example: After a several-week downtrend, a stock formed an inverted hammer on the daily chart; the next session closed higher than the hammer's close, prompting further analysis of potential price movement.

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