Inverted Hammer Bullis Candlestick Pattern

The Psychology
In a downtrend or during a pullback within an uptrend, the stock gaps down. A valid attempt is made to rally the stock off the bottom, but the strength subsides and the stock falls to close near the day’s low. The rally attempt failed, but it does suggest that there are some bulls out there looking to buy. For a reversal to occur a strong follow up day is needed with solid volume.

A small real body forms at the lower end of the trading range. The upper shadow is usually no more than twice as long as the real body and there is no or almost no lower shadow.

Pattern: reversal
Reliability: low/moderate