Shooting Star Candle Pattern

Inverted Hammer Bullish Candle Setups

Inverted Hammer Candlestick Pattern and Shooting Star Candle Pattern candles look similar. These candlestickshave a long upper shadow & a short body at the bottom. Their color does not 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 setup while shooting star candleestick is a bearish reversal xauusd pattern.

Upward Trend Reversal - Shooting Star Candles

Downward Trend Reversal - Inverted Hammer Candles

Inverted Hammer Candlestick Pattern and Shooting Star Candle Pattern Chart Patterns

Inverted Hammer Candlestick

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

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

Inverted Hammer Candlestick

Technical Analysis of Inverted Hammer Candlestick

A buy is completed when a candle closes above neck line, this is opening of the candle on the left side of this setup. The neck line point in this case forms the resistance zone.

Stop orders for the buy trades should be set few pips below the lowest price on the recent low.

An inverted hammer is named so because it demonstrates that the market is hammering out a bottoms.

Shooting Star Candlestick

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

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

Shooting Star Candlestick

Technical Analysis of Shooting Star Candle

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

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

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