Shooting Star Candlestick Pattern
Inverted Hammer Bullish Candle Setups
Inverted Hammer Candlestick Pattern & Shooting Star Candlestick Pattern candles look similar. These candlesticks have a long upper shadow and a short body at the bottom. Their colour doesn't 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 market reversal setup while shooting star candlestick is a bearish reversal gold pattern.
Upwards Trend Reversal - Shooting Star Candles
Downwards Trend Reversal - Inverted Hammer Candles
Inverted Hammer Candlestick Pattern & Shooting Star Candlestick Pattern Chart Patterns
Inverted Hammer Candle
This is a bullish market reversal candlestick pattern. It occurs at the bottom of a trend.
Inverted hammer occurs at the bottoms of a down trend & shows possibility of reversal of the downward trend.
Inverted Hammer Candle
Trading Analysis of the Inverted Hammer Candle
A buy is completed when a candlestick closes above neckline, this is opening of the candle to the left side of this setup. The neckline point in this case forms the resistance zone.
Stop orders for the buy trades should be set few pips below lowest price on the most recent low.
Inverted hammer candle is named so because it demonstrates that the market is hammering a bottom.
Shooting Star Candle
This is a bearish market reversal candlestick 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 price then rallied upwards but was pushed back downward to close near the open.
Shooting Star Candle
Analysis of the Shooting Star Candle
A sell is completed when a candlestick closes below neckline, this is the opening of candlestick on left side of this pattern. The neck-line in this case is a support zone.
Stop orders for the sell trade positions should be set a couple of pips above highest price in the most recent high.
The Shooting Star candle is named and called so because at the top of an upwards trend this candle pattern resembles a shooting star up in the sky.
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