The inverted hammer is a bullish signal and an indication of a likely end of a bearish trend. Both hammers and inverted hammers give the same signals. However, a hammer represents a significantly stronger signal, so it is wise to wait for a confirmation before acting on it.

 

1.It is a sign of trend indecisiveness and a weakness to the strength of a trend signaling a possible trend reversal.

2. At a certain level there was no more buyers indicating the perception that this was no longer an attractive price. Sellers did not enter ag