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The Inverted Hammer is considered one of the most significant chart patterns. However, no tool can predict future price movements with 100% accuracy. When you use Hammer and Inverted Hammer candles as part of your trading strategy, always make sure to use additional insights and risk management tools to minimise potential losses. A hammer is a kind of bullish reversal candlestick pattern.A hanging man candle is similar to the " hammer " candle in its appearance. Learn how to identify and use the inverted hammer , a bullish reversal pattern that forms after a downtrend. See examples, trading strategies, and filters to improve the accuracy of the pattern.