The Inverted Hammer is a bearish reversal pattern represented by one candle.

It appears during an upward trend and as a candle with a long upper wick and a short body at the bottom.

Commonly found during uptrends, its long upper wick suggests that the demand has strongly rejected the price when it tried to continue its way upwards. Then, indicating that the supply is very present at that price and that it can reverse its trend.

Usually, an Inverted Hammer precedes a downwards trend reversal or pullback. Therefore, it implies that the price is likely to decrease and can be interpreted as a sell signal. Also, it can be easily combined with other indicators to reinforce the entry points.