Inverted Hammer Candlesticks and Shooting Star Candlesticks

Bullish Stock Candlestick Patterns Guide and Bearish Candlestick Patterns Guide

Inverted Hammer Candle Pattern & Shooting Star Candle Pattern candles look alike. These candlesticks have a long upper shadow & a short body at the bottom. Their color does not matter. What matters is the point where they appear whether at the top of a market stock trend (star) or the bottom of a market stock trend (hammer).

Difference is that inverted hammer is a bullish reversal stock pattern while shooting star candleestick is a bearish reversal stock pattern.

Upward Trend Reversal - Shooting Star Candles

Downward Trend Reversal - Inverted Hammer Candles

Inverted Hammer Candle Pattern & Shooting Star Candle Pattern Chart Setups

Inverted Hammer Stock Candle

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

Inverted hammer forms at the bottoms of a down stock trend and indicates the possibility of a market reversal of the downwards trend.

Inverted Hammer Stock Candlestick

Analysis of Inverted Hammer Stock Candle

A buy is confirmed when a candlestick closes above the neckline, this is opening of candlestick on the left-side of this pattern. Neck-line point in this case forms the resistance area.

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

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

Shooting Star Candlestick

This is a bearish reversal candle pattern. It forms at the tops 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 downwards to close near the open.

Shooting Star Candle

Technical Analysis of Shooting Star Candle

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

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

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