Reversal Candle Sticks Patterns - Inverted Hammer Candle Pattern

Reversal Candles Trading Patterns: Bullish Candle Patterns & Bearish Candlestick Patterns PDF

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

Difference is that inverted hammer stock candles pattern is a bullish reversal stock candle-sticks pattern while shooting star stock candle-sticks pattern is a bearish reversal stock candle-sticks pattern.

Upward Trend Reversal - Shooting Star Candles Pattern

Downward Trend Reversal - Inverted Hammer Candles pattern

Inverted Hammer Stock Candlesticks Pattern and Shooting Star Candles Pattern Candles Chart Setups

Inverted Hammer Candlesticks Pattern

Inverted Hammer Candles Pattern is a bullish reversal stock candles pattern. It forms at the bottoms of a trend.

Inverted hammer stock candles pattern occurs at the bottom of a downwards trend and indicates the possibility of market reversal of the downwards stock trend.

Indices Technical Analysis of Inverted Hammer Candle Sticks Pattern

Indices Technical Analysis of Inverted Hammer Candle Sticks Pattern

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

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

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