An inverted-hammer pattern on Japanese candlestick charts is not all that commonly used in technical analysis. But the pattern can represent a low or bottom following a downward trend. Let's check out the CBOE 10 Year Treasury Note Yield Index (TNX). 
In this daily Japanese candlestick chart of the TNX, below, we can first see a downward trend in place from late October. Most of the candle patterns are reversal patterns, so we must first have a trend to reverse -- a candlestick pattern in a sideways trend is largely meaningless as there is no up or down trend to reverse. Friday's candle (the next to last one) is the inverted hammer with a long upper shadow and no lower shadow and a small real body. The latest candle is white or bullish with the close higher than the opening. This bullish candle is the confirmation of the reversal.
Reversals on candles can be a change in trend from down to up, or from down to sideways. Candles do not give you price targets, so let's check out a Point and Figure chart.
In this daily Point and Figure chart of the TNX, below, we used a traditional even box plotting and can see that a trade at $35.00 on this chart could generate a downside yield target but in the meantime a target of $65.00 is being projected. Ouch but let's keep in mind the Point-and-Figure charts ignore time.
In this second Point and Figure chart of the TNX, below, we used a percentage move scaling and plotting. Here the software projects a possible target of $33.00. A trade at $36.74 may turn this chart back into an uptrend.
Bottom line strategy: There is an old saying that goes like this, "If you truly seek wisdom, you will visit all the tents in the marketplace."
In other words you should explore fundamental analysis, quantitative analysis and yes, also technical analysis.
