Inverted Hammer — what it is and how to use it in trading
Definition
An Inverted Hammer is a candle identical in shape to a Shooting Star (a small body near the bottom, a long upper wick) but it appears after a DOWNTREND rather than a rally — buyers already tested higher prices intrabar even though sellers pushed the close back down.
How it works in the builder
inverted_hammer is a boolean operand with no parameters: the same shape check as shooting_star, but a distinct operand.
What it looks like on the chart
Visually indistinguishable from a Shooting Star — only the preceding trend differs.
Typical use
Typical condition: inverted_hammer == 1 after a decline, often confirmed by a bullish candle on the next bar or an oversold rsi(14) < 30.
Common pitfalls
The same shape as shooting_star fired in the opposite trend context — without an explicit downtrend/oversold filter it's indistinguishable from any Shooting-Star-shaped candle appearing mid-range.
This block is available in the strategy builder
137 no-code blocks — build an entry condition with this term and test it on history
Historical results do not guarantee future ones. The service is an informational and analytical tool, not an individual investment recommendation; trades are not executed.