Inverted Hammer Candlesticks and Shooting Star Candlesticks

Bullish Indices Candle Patterns Tutorial and Bearish Stock Candlestick Patterns Guide

Inverted Hammer Candle-stick 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 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).

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

Upward Indices Trend Reversal - Shooting Star Candles

Downward Indices Trend Reversal - Inverted Hammer Candles

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

Inverted Hammer Trading Candle-stick

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

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

Inverted Hammer Candle

Technical Analysis of Inverted Hammer Trading Candle-stick

A buy is completed when a candle closes above the neck-line, this is opening of candle on the leftside of this pattern. The neck-line in this instance is a resistance area.

Stop orders for the buy stock trades should be set a few 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 out a bottoms.

Shooting Star Candlestick

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 trading price then rallied up but was pushed back down to close near the open.

Shooting Star Candlestick

Technical Analysis of Shooting Star Candle-stick

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

Stop orders for the sell stock trades should be set a few pips above highest stock trading price on the recent high.

The Shooting Star candlestick is 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.