For the first part is the famous one that is inverted hammer, it is, as the name suggests, that it
is an inverted hammer.
We have seen in case of a bullish pattern, we are seeing that this was the hammer.
In this case, this hammer is got inverted now, so now you know what exactly inverted hammer means?
Inverted Hammer has a small body, as you can see, and a longer upper, big upper shadow is too long,
whereas body is too short and nonexistent, lower shadow or smaller lower shadow.
Theoretically speaking, this body should be within the bottom one fourth of the total length of the
candle.
So it is there in this case.
So it is in the bottom one fourth of this candle.
So quick recap, it is a single candle pattern which has a small body buried at the bottom one fourth
of the range.
The body is very small and there is no law shadow in this case, no or very small law or do you have
here?
We have a long shadow.
As you can see, a shadow is very long, which would be at least twice that you will normally have if
this is important.
Bottom one fourth color is not important.
This is again, very important.
The color of this particular candle can also be green, in which case it will be green in case where
this is your open and this is your clothes.
So even if it is there, it will still be considered as inverted hammer.
In this case, we have open here and close here.
But even if it is like this, then also it will be considered as an inverted hamlet.
When this should come, this should come when Marcus Market is in uptrend.
Why?
Because we are talking about a reversal pattern.
We are seeing that market is in a trend, say, for example, and in an uptrend.
This pattern is coming and it is reversing the trend of the stock.
That's why it should come in uptrend.
Now, let's go to chart and see if we can see some whammer getting formed or not.
This is a chart of Tata Motors.
Can you spot an inverted hammer in this case?
Do you see any inverted hammer?
Although there are many of them, but the inverted hammer, which I'm talking about, is this one.
Can you can you see this?
Let's zoom out a bit so that you can see properly.
So I'm talking about this one, this is your inverted hammer, you have a long shadow and very small
body we have.
So this is the inverted hammer that as you're getting, that has got form.
And you can see that this has come when market is in uptrend.
The market is in uptrend.
This has come.
So this is an example of.
An inverted hammer, but as I told you, rule of thumb is that as soon as the hammer guns don't trade,
we are to see the next scandal if that next scandal in this case should open BURISH.
But you can see in this case, the next scandal did not open burish it in fact, the gap A.
So practically speaking, I am not going to take this trip if this happens, because that does not suffice.
The whole logic behind trend reversal, if trend has to reverse, it has to open somewhere here, here
or here.
But that did not happen.
So although it is an inverted hammer, I will not take it.
But if you consider this one.
There is another inverted hammer in this case.
This green one, but as I told you, the color is not that important.
Market is an uptrend.
It is in green.
And you can see that market has open gap up.
It should have open somewhere below.
It should have open bearish, but it did not.
And it closed below the open of this scandal.
And it has kind of formed a bearish engulfing in this case.
We have bearish engulfing very, very we have a bullish one.
And second candle has completely engulfed this scandal.
So in this case, you can consider going short on the market.
And as expected, you can see there was a sharp fall after this pattern is formed and it has kind of
reverse the trend.
There is another inverted hammer that you can see here.
It wasn't a not a very strong uptrend, but you can see five, six green candles are there and next
candle has open.
Burish, you can take this straight.
Of course, it did not fall much, but this was a valid trade that you can take.
But this is how you have to identify a hammer and this is how you have to treat it properly.
Hope you have understood inverted hammer.
Let's now move on to the next button.