Inverted Hammer Commodities Candle Pattern

Inverted Hammer Bullish Commodities Candle-stick Patterns

Inverted Hammer Commodities Candle-stick Pattern & Shooting Star Candlestick Pattern look alike. These have a long upper shadow and a short body at the bottom. Their fill color does not matter. What matters is the point where these candlesticks appear whether 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 commodity pattern while shooting star is a bearish reversal commodity pattern.

Upward Commodities Trend Reversal - Shooting Star Candlesticks

Downward Commodities Trend Reversal - Inverted Hammer Candlesticks

Inverted Hammer Commodities Candle-stick Pattern & Shooting Star Candlestick Pattern Commodities Trading Chart Patterns

Inverted Hammer Commodities Candle

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

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

Inverted Hammer Commodities Candle

Analysis of Inverted Hammer Commodities Candle

A buy is confirmed when a candlestick closes above the neck line, this is opening of the candle stick on the left side of this pattern setup. The neckline point in this case forms the resistance level.

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

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

Shooting Star Candlestick

This is a bearish reversal candlestick pattern. It forms at top of a market trend.

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

Shooting Star Candle

Analysis of Shooting Star Candlestick

A sell is confirmed when a candlestick closes below the neck line, 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 trades should be set a few pips above the highest trading 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 looks like a shooting star up high in the sky.