The inverted hammer appears at downtrend extremes with an upper shadow at least 2× the body length and almost no lower shadow. It shows bulls attempted to drive price higher — though they failed — signaling buying interest has emerged.
Tentative bullish probing at the bottom. Bulls tried to rally price but bears pushed it back; the close is near the open. Though bulls failed this time, the appearance of buying at lows is notable. A confirming candle next day raises the probability of reversal.
Below-average reliability (win rate 57%). Must wait for a confirming bullish candle next day breaking above the inverted hammer's body before entering long. Stop-loss below the candle's low.
Low standalone reliability — needs follow-through confirmation. Unlike a hammer, the upper shadow represents bullish effort that failed — it's an indecision candle.