Is Inverted Hammer Stock Indices 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 indices candlesticks pattern occurs at the bottom of a down indices trend and indicates the possibility of reversal of the downward stock indices 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 indices trades should be placed a few pips below the lowest stock indices price on the recent low once a indices trader opens a trade based on this candlesticks pattern setup. An inverted hammer stock indices candlesticks pattern is named so because it signifies that the stock indices trading market is hammering out a bottom.