Inverted Hammer /
Gravestone Doji Bullish
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
What it
Means
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 Inverted Hammer
