the Inverted Hammer

As Forexgen Presents the Inverted Hammer is a pattern that occurs at the bottom of a downtrend. It indicates a possibility of the reversal of the downtrend.

Recognition Criteria:

• A small real body is near the lower part of the price range.
• The very long upper shadow.
• Occurs in a downtrend.

Also The Shooting Star is a bearish reversal pattern. It occurs in an upper trend which indicates that the market opens at the lows of the season, rallies and pulls back to the bottom.

Recognition Criteria:

• A very long upper shadow.
• The small real body at the lower end of the price range.
The real body gaps away from the prior real body.