RELIABILITY: Low / Moderate
How to Identify it :· Small real body at the lower end of the trading range · Upper shadow usually no more than twice as long as the real body · No (or almost no) lower shadow As the market opens below the close of the previous day, the bulls rally briefly, but not enough to close above the previous day's close. As this leaves shorts in a losing position, the Inverted Hammer presents the potential for an upcoming rally. Confirmation of the trend reversal would by an opening above the body of the Inverted Hammer on the next trading day. If the open and the close are identical, the indicator is considered a Gravestone Doji. The Gravestone Doji has a higher reliability associated with it than an
