Inverted Hammer Candlestick and Shooting Star Candlesticks
Bullish and Bearish Candlestick Patterns for Indices - Trading Guide
Inverted Hammer Candlestick Pattern and Shooting Star Candlestick Pattern candlesticks look alike. These have a long upper shadow and a short body at the bottom. Their fill color doesn't matter. What matters is the point where these candlesticks appear whether at the top of a market trend (star) or bottom of price trend (hammer).
The distinction lies here: the inverted hammer configuration signals a bullish reversal, whereas the shooting star configuration signals a bearish reversal pattern in trading.
Reversal of an Upward Trajectory - Indicated by the Shooting Star Candlestick Pattern
Inverted Hammer Candlesticks Signal a Reversal of a Downward Trend at
Inverted Hammer Candle Pattern and Shooting Star Candlestick Pattern Setups
Inverted Hammer Trading Candlestick
This represents a bullish reversal candlestick pattern, which forms at the bottom of a market trend.
An inverted hammer happens at the bottom of a downtrend and it may mean that the downtrend could reverse.
Inverted Hammer Candle
Analysis of the Inverted Hammer Trading Candle-stick
A buy happens when a candle closes higher than the neckline: this is when the candle opens on the left side of the pattern. The neckline here acts like a ceiling.
Buy stock stop orders ought to be positioned a few pips beneath the lowest stock price recorded at the most recent low point.
The Inverted Hammer candlestick earns its name as it visually implies that the stock market activity is forcefully establishing a market bottom.
Shooting Star Candle
This is a bearish reversal candle pattern. It forms at top of a market trend.
It happens at the highest point of an upward trend, where the starting price is the same as the lowest price, and then the price went up but was pushed back down to end close to the start.
Shooting Star Candlestick
Trading Analysis of the Shooting Star Candle
A sell happens when a candle closes under the neck-line, which is the start of the candlestick on the left side of this pattern. The neckline here is a support area.
Sell stop orders for stock positions should be established just a short distance above the peak stock price recorded in the recent high period.
The Shooting Star candlestick is named that way because when it's at the top of an rising market, this stock candle looks like a shooting star in the sky.
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