Inverted Hammer Candlestick and Shooting Star Candlesticks

Bullish Indices Candlestick Patterns Tutorial & Bearish Stock Candle Patterns Guide

Inverted Hammer Candlestick Pattern and Shooting Star Candlestick 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 candlesticks appear whether at the top of a market trend (star) or bottom of price trend (hammer).

Difference is that the inverted hammer is a bullish reversal pattern setup while shooting star pattern is a bearish reversal trading pattern.

Upwards Trend Reversal - Shooting Star Candles

Downwards Trend Reversal - Inverted Hammer Candles

Inverted Hammer Candlestick Setup and Shooting Star Candle Pattern - Inverted Hammer Candlestick Setup

Inverted Hammer Candle Pattern and Shooting Star Candlestick Pattern Setups

Inverted Hammer Trading Candlestick

This is a bullish reversal candle pattern. It forms at the bottom of a market trend.

Inverted hammer forms at the bottoms of a down trend and shows the possibility of a reversal of the downwards trend.

Inverted Hammer Candlestick - Shooting Star Candle Setup vs Inverted Hammer Candlestick Pattern

Inverted Hammer Candle

Trading Analysis of the Inverted Hammer Trading Candle-stick

A buy is completed when a candle closes above the neckline, this is opening of candle on the left side of this pattern. The neckline in this instance is a resistance area.

Stop orders for the buy stock trades should be set a couple of pips below the lowest stock price on the recent low.

Inverted hammer candle is named so because it demonstrates that the stock market is hammering a bottom.

Shooting Star Candle

This is a bearish reversal candle pattern. It occurs at top of a market trend.

It occurs at the top of an up trend where the open price is same as the low and price then rallied upward but was forced back downwards to close at near the open.

Shooting Star Candle Chart Setup

Shooting Star Candlestick

Trading Analysis of the Shooting Star Candlestick

A sell is completed when a candle closes below neck-line, this is the opening of candle to the left side of this pattern. The neckline in this instance is a support zone.

Stop orders for the sell stock trade positions should be set just a few pips above highest stock price in the recent high.

The Shooting Star candlestick is called & named so because at the top of an upwards market trend this stock candle pattern looks like a shooting star up high in the sky.

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