Is Inverted Hammer Stock Indexes Candlestick Pattern Bullish or Bearish?
Inverted Hammer candlesticks pattern is a bullish reversal candlestick pattern. It occurs at the bottom of a Indices trend.
Inverted Hammer stock indexes candlesticks pattern occurs at the bottom of a down indices trend and indicates the possibility of reversal of the downward stock indexes trend.
Inverted Hammer Bullish Indices Candlesticks Pattern
Technical Analysis of Inverted Hammer Indices Candlestick Pattern
A bullish reversal buy stock indices signal is confirmed when a candlestick closes above the neckline, this is the opening of the candlestick on the left side of this inverted hammer candlesticks pattern. The neckline in this case is a resistance level.
Stop orders for the buy stock indexes trades should be placed a few pips below the lowest stock indexes price on the recent low once a indices trader opens a trade based on this candlesticks pattern setup. An inverted hammer stock indexes candlesticks pattern is named so because it signifies that the stock indexes trading market is hammering out a bottom.