Inverted Hammer Candle Pattern

Inverted Hammer Bullish Candlestick Setups

Inverted Hammer Candle Pattern & Shooting Star Candle Pattern candle-sticks look similar. These candlesticks have a long upper shadow and a short body at the bottom. Their fill color doesn't matter. What matters is the point where they appear whether at the top of a market trend (star) or the bottom of a market trend (hammer).

The difference is that inverted hammer is a bullish reversal pattern while shooting star is a bearish reversal 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 Stocks Candle

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

Inverted hammer forms at the bottom of a down trend and indicates the possibility of reversal of the downwards trend.

Inverted Hammer Stocks Candlestick

Technical Analysis of Inverted Hammer Stocks Candle

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

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

An inverted hammer is named so because it shows that the stocks 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 the same as the low and price then rallied up but was pushed back downwards to close near the open.

Shooting Star Candle

Technical Analysis of Shooting Star Candlestick

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

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

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