An inverted hammer is a bullish reversal candlestick pattern that usually appears after a downtrend. It has a small real body near the bottom and a long upper shadow, showing that buyers tried to push the price higher during the session even though sellers pulled it back before closing. This indicates that buying interest is starting to enter the market and bearish momentum may be weakening. When the next candle closes above the inverted hammer’s high with strong volume, it gives stronger confirmation of a potential trend reversal from bearish to bullish.