2 of 3 Candlestick Patterns That Pinpoint Reversals

Bearish Hammer Candlestick (AKA Inverted Hammer)

These bearish formations are simply upside down hammers, and are also known as inverted hammers.

Here's what a bearish hammer candlestick is telling us:

Price opened near the lows of the candle, and although buyers initially succeeded at pushing price higher, they lost the final battle when sellers tipped the scales in their favor again by closing price lower than the opening price.