Reversal Stock Candlestick Patterns - Inverted Hammer Candle-stick Pattern

Reversal Candles Patterns: Bullish Indices Candle Patterns & Bearish Indices Candlestick Patterns Guide

Inverted Hammer Stock Candles Pattern and Shooting Star Candles Pattern candlesticks look alike. These have a long upper shadow & a short body at the bottom. Their fill color doesn't matter. What matters is the point where these candle-sticks appear whether at the top of a market trend (star) or the bottom of a market trend (hammer).

The difference is that inverted hammer candles pattern is a bullish reversal candle pattern while shooting star candle-sticks pattern is a bearish reversal candlestick pattern.

Upward Trend Reversal - Shooting Star Candlesticks Pattern

Downward Trend Reversal - Inverted Hammer Candlesticks pattern

Inverted Hammer Stock Candlesticks Pattern and Shooting Star Candle-stick Pattern Chart Patterns

Inverted Hammer Candlesticks Pattern

Inverted Hammer Stock Candle Pattern is a bullish reversal candlesticks pattern. It forms at the bottom of a trend.

Inverted hammer candlesticks pattern occurs at the bottom of a trading down trend & indicates the possibility of a reversal of the downwards trend.

Inverted Hammer Stock Candlestick Patterns - How to Trade Inverted Hammer Candlesticks Patterns - How to Analyze Inverted Hammer Candle-sticks Pattern

Analysis of Inverted Hammer Candle-stick Pattern

A buy is confirmed when a candlestick closes above the neckline of the inverted hammer candlestick pattern, this is the opening price of the candlestick on the left side of this inverted hammer candlestick pattern. The neckline in this instance is a resistance area.

Stoploss orders for the buy stock trades should be set a few pips below the lowest price on the recent low of this inverted hammer candlesticks pattern.

An inverted hammer is named so because it demonstrates that the market is hammering out a bottoms.