The inverted hammer is a potential bullish reversal signal that appears at the bottom of a downtrend.

Core Features:
Small entity at the lower end of the price range.
A long upper shadow, usually more than twice the length of the body.
There is almost no lower shadow.
Market Psychology:
After a continued fall, the bulls attempted to push the price higher (forming a long upper shadow). Although they were suppressed by the bears and closed lower, this indicates that buyer strength is beginning to intervene, and the downward momentum may be exhausting.
Key points:
Must be confirmed! This is not a signal to act, but a warning. We need to wait for the next K-line to close with a large bullish candle, and its closing price must be higher than the highest point of the inverted hammer to confirm that the reversal is valid.
An increase in trading volume can enhance its reliability.
Note the distinction:
Shooting Star: It has the same shape as an Inverted Hammer, but appears at the top of an uptrend, indicating a bearish signal.
Mnemonic: "Inverted hammer on the ground (bullish at the bottom), shooting star in the sky (bearish at the top)." #加密市场回调