Learn one candlestick pattern every day.

The inverted hammer candlestick is a single bullish reversal candlestick in the 12 golden K. In some cases, it is seen as a signal that a downtrend is about to correct or come to an end.
The inverted hammer does not have requirements for color; it can be either a bearish candle or a bullish candle, but it has high requirements for position and structure. First, regarding position, it must be located within a downtrend. As for structure, the most perfect scenario only allows for a long upper shadow and does not permit a lower shadow, with the shadow part needing to be at least twice as long as the body part.
However, the inverted hammer candlestick also has a deformed structure, allowing for a lower shadow but it must be very short.
Note:
1. The longer the upper shadow, the shorter the lower shadow, and the smaller the body, the more significant it is.
2. The bottom that appears at the end of a downtrend can be seen as a signal that the trend is about to reverse or end.
3. The bottom rises first and then falls, which may indicate a breakout; buy on dips (in a bull market background).
4. If the inverted hammer candlestick lacks strength and is not at a key level, discard it immediately!
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