One such tale tells how the 10th Century Archbishop of Canterbury, Dunstan, a former blacksmith, outwitted the devil and in doing so obtained a promise from the devil that he would never again enter a place where a horseshoe was hung over the door. Folk lore also has it that iron repels fair folk, and since horseshoes usually contain iron they will help keep your house free of mischievous demons, imps, pixies and elves.

In order to retain the good luck the horseshoe should be hung upside down with the shoulders pointing upwards otherwise all the luck will fall out.