Inverted Hammer
A candle with a small body near the bottom and an upper wick at least twice the body's length, appearing after a decline.
Buyers pushed price up during the period and could not hold it, which sounds bearish and is conventionally read as bullish on the grounds that the attempt happened at all. That tension is worth noticing: it is a reading in which failure is taken as evidence of intent, and the measured record is the only way to test whether it survives contact with the data.
What a inverted hammer has actually done
Every occurrence we hold, scored on whether price moved more than 0.5% in the pattern’s own direction within three candles.
| Timeframe | Occurrences | Reached target | Baseline | Edge |
|---|---|---|---|---|
| 1D · crypto | 5,141 | 36.6% | 35.6% | +1.0pp |
| 1H · crypto | 3,882 | 36.5% | 22.1% | +14.4pp |
| 4H · crypto | 3,048 | 43.4% | 33.4% | +10.0pp |
Baseline is the share of ordinary candles that passed the same test over the same period, same timeframe and same direction. A rate at or below it means the shape added nothing. Edge is the difference between the two. This is a record of what followed, not a forecast.