Inverted Hammer Candlesticks and Shooting Star Candlesticks

Bullish Stock Indices Candlestick Patterns Tutorial and Bearish Stock Indices Candlestick Patterns Tutorial

Inverted Hammer Indices Candlestick Pattern and Shooting Star Indices Candlestick Pattern candlesticks look alike. These have a long upper shadow and a short body at the bottom. Their color does not matter. What matters is the point where they appear whether at the top of a market indices trend (star) or the bottom of a market indices trend (hammer).

The difference is that inverted hammer is a bullish reversal indices pattern while shooting star is a bearish reversal indices pattern.

Upward Indices Trend Reversal - Shooting Star Candlesticks

Downward Indices Trend Reversal - Inverted Hammer Candlesticks

Inverted Hammer Indices Candlestick Pattern and Shooting Star Indices Candlestick Pattern Indices Chart Patterns

Inverted Hammer Candlestick

This is a bullish reversal candlestick pattern. It occurs at the bottom of a Indices trend.

Inverted hammer occurs at the bottom of a down indices trend and indicates the possibility of reversal of the downward Indices trend.

Inverted Hammer Candlestick

Technical Analysis of Inverted Hammer Candlestick

A buy is confirmed when a candlestick closes above the neckline, this is the opening of the candlestick on the left side of this pattern. The neckline in this case is a resistance level.

Stop orders for the buy stock indices trades should be placed a few pips below the lowest stock indices price on the recent low.

An inverted hammer is named so because it signifies that the stock indices trading market is hammering out a bottom.

Shooting Star Candlestick

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

It occurs at the top of an up indices trend where the open stock indices price is the same as the low and stock indices price then rallied up but was pushed back down to close near the open.

Shooting Star Candlestick

Technical Analysis of Shooting Star Candlestick

A sell is confirmed when a candlestick closes below the neckline, this is the opening of the candlestick on the left side of this pattern. The neckline in this case is a support level.

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

The Shooting Star is named so because at the top of an upward market indices trend this stock indices candlestick pattern resembles a shooting star up in the sky.