Inverted Hammer Candlesticks and Shooting Star Candlesticks

Bullish Indices Candle Patterns Tutorial and Bearish Stock Candlestick Patterns Guide

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

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

Upwards Trend Reversal - Shooting Star Candles

Downwards Trend Reversal - Inverted Hammer Candles

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

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

Inverted Hammer Trading Candlestick

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

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

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

Inverted Hammer Candlestick

Technical Analysis of Inverted Hammer Trading Candle-stick

A buy is completed when a candle closes above the neckline, this is opening of candle on the leftside 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 trading price on the recent low.

An inverted hammer is named so because it demonstrates that the stock market is hammering a bottom.

Shooting Star Candlestick

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

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

Shooting Star Candlestick Chart Setup

Shooting Star Candlestick

Technical Analysis of Shooting Star Candle-stick

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

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

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

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