The Hammer is a bullish reversal pattern that indicates a stock is approaching the bottom of a downtrend.
The distinction is in the context. After a price increase, a shooting star appears, signalling a potential lower turning point. After a price decrease, an inverted hammer appears, signalling a probable upward turn.
When the price opens at a given level and then rapidly rises, the 'Inverted Hammer' is produced. The price reaches a peak before plummeting to close near its opening. The colour of the candle is irrelevant; it could be red or green.
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