Inverted Hammer Candlestick - Shooting Star Candlestick - Inverted Hammer vs Shooting Star Candlesticks

Inverted Hammer Bullish Candlestick - Shooting Star Bearish Candlestick - Bullish vs Bearish Candles Patterns

Inverted Hammer Candlestick Pattern and Shooting Star Candlestick Setup candle-sticks look alike. These candlesticks patterns have a long upper shadow and a short body at the bottom. Their fill colour doesn't matter. What matters is where they appear if 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 Trend Reversal - Shooting Star Candlesticks

Downward Trend Reversal - Inverted Hammer Candlesticks

Inverted Hammer Candlestick Pattern and Shooting Star Candlestick Setup Candles Chart Setups

Inverted Hammer Candle

This is a bullish reversal candle setup. It occurs at the bottom of a trend.

Inverted hammer occurs at the bottom of a downtrend and indicates the possibility of market reversal of the downward trend.

Inverted Hammer Candlestick

Analysis of Inverted Hammer Candlestick Pattern

A buy is completed when a candle closes above neck-line, this is opening of the candle on left side of this pattern. The neck line region in this acts as a resistance zone.

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

An inverted hammer is named so because it indicates that the market is hammering ++oout a bottom.

Shooting Star Candlestick

This is a bearish reversal candle pattern. It occurs at tops of a market trend.

It occurs at the top of an uptrend where the open price is same as the low and price then rallied up but was forced back downward to near the open.

Shooting Star Candlestick

Technical Analysis of Shooting Star Candlestick Pattern

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

Stop orders for the sell trade transactions should be set just a few pips above highest price in the recent high.

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