Inverted Hammer ==22==& Shooting Star Candlesticks
Inverted hammer candles and shooting star candle-sticks look alike. These candles have a long upper shadow ==22==& a short body at the bottom. Their fill colour does not matter. What matters is the point where these candle-sticks appear whether at the top of an upward market trend (shooting star) or the bottom of a downward market trend (inverted hammer).
The difference between the two is that inverted hammer candle is a bullish reversal pattern while shooting star candle is a bearish reversal trading pattern.
Upwards Trend Reversal - Shooting Star CandlesDownwards Trend Reversal - Inverted Hammer ==22==CandlesCandlesticks
Inverted Hammer and Shooting Star Japanese Candlesticks
Inverted Hammer Japanese Candle
The Inverted Hammer candle is a bullish reversal ==22==candlecandlestick pattern. It occurs at the bottoms of a BTCUSD downward trend.Inverted hammer candle occurs at the bottom of a down-trend and indicates possibility of reversal of the downward Bitcoin price trend.
Inverted Hammer Candle Pattern - Bitcoin Trading
Analysis of the Inverted Hammer Bitcoin Trading Candle
A buy signal generated using the inverted hammer candle setup is confirmed when another candle is formed & this new candle closes above the neck line, this is the opening of candlestick onto the left side of this hammer candle like is shown above. The neck-line in this case is a resistance level.
If the candle formed next to the hammer candle doesn't close above the neck line, then as a trader you wait to see if the subsequent candlestick closes above the neck line. Only when a candle that closes above the neck line is formed is when this bullish reversal pattern is confirmed.
Stop losses for the buy trade that has been opened should be set a couple of pips below the lowest price on the recent low.
An inverted hammer candle is named so because it signals that the price is hammering out a bottom.
Shooting Star Japanese Candlestick
The Shooting Star candle is a bearish reversal candle pattern. It occurs at the top of an upward trending market.Shooting Star candle occurs at the top of an up-trend where the opening price of Bitcoin is the same as the low price or close to the low price - meaning price opened at that point rallied up but was pushed back down to close near the same opening price level.
Shooting Star Candle Pattern - Bitcoin Trading
Technical Analysis of the Shooting Star Candle
A sell signal generated using the shooting star candle pattern is confirmed when a new candle closes below the neckline: this neckline is the opening of the candle on the left side of the shooting star candle like is shown in the illustration revealed above. The neck line in this instance is a support level. Stoploss orders for the sell trade transactions opened using this setup should be set a few pips above the highest price in the recent high.
The Shooting Star candle is named so because it is formed at the top of an upward BTC USD Crypto market trend - this candlestick pattern looks like a shooting star up in the sky thus it name - shooting star.
Learn More Topics & ==22==TutorialsGuidesCourses:
- How Can You Analyze/Interpret a New BTCUSD Order in MT4 iPad App?
- How Can You Login to MT4 BTCUSD Account Described?
- Drawing Fibonacci Extension Bitcoin Trading Levels in Upwards BTC USD Chart Trend & Downwards BTC USD Chart Trend
- Exit ==22==Trade Signals & Setting Stop Loss Levels
- How Can You Determine if there is a Market Trend?
