Inverted Hammer Candlestick - Shooting Star Candle - Inverted Hammer vs Shooting Star Candles

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

Inverted Hammer Candlestick Pattern and Shooting Star Candle Setup candle-sticks look alike. These candlesticks patterns have a long upper shadow and a short body at the bottom. Their fill colour does not matter. What matters is where they appear if at the top of a market trend (star) or the bottom of a trend (hammer).

Difference is that the inverted hammer candlestick is a bullish price reversal setup while shooting star pattern is a bearish price reversal trading pattern.

Upwards Trend Reversal - Shooting Star Candlesticks

Downwards Trend Reversal - Inverted Hammer Candlesticks

Inverted Hammer Candlestick Setup & Shooting Star Candlestick Setup - Inverted Hammer Bullish Candle Setups

Inverted Hammer Candlestick Pattern and Shooting Star Candlestick Setup Candles Setups

Inverted Hammer Candle

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

Inverted hammer occurs at the bottom of a downtrend and shows the possibility of price reversal of the downward trend.

Inverted Hammer Candlestick Setup - Inverted Hammer Bullish Candle Setup - Inverted Hammer Bullish Candles Patterns

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 the pattern. The neckline region in this acts as a resistance zone.

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

An inverted hammer candlestick is called & named so because it shows that the market is hammering out a bottom.

Shooting Star Candlestick

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

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

Shooting Star Candlestick Setup - Shooting Star Bearish Candles Pattern - Inverted Hammer Bullish Candlestick Patterns

Shooting Star Candlestick

Trading Analysis of the Shooting Star Candlestick Pattern

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

Stop orders for the sell trades should be set just a couple of pips above highest price in the recent high.

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

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