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.
