Inverted Hammer Candlestick Pattern

Inverted Hammer Bullish Candlestick Patterns

Inverted Hammer Candle Setup & Shooting Star Candle Setup look alike. These have a long upper shadow & a short body at the bottom. Their color does not matter. What matters is the point where these candle-sticks 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 energies setup while shooting star candleestick is a bearish reversal pattern.

Upward Trend Reversal - Shooting Star Candles

Downward Trend Reversal - Inverted Hammer Candles

Inverted Hammer Candle Setup & Shooting Star Candle Setup Chart Patterns

Inverted Hammer Candlestick

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

Inverted hammer occurs at the bottoms of a down trend and indicates possibility of market reversal of the downward trend.

Inverted Hammer Candle

Analysis of Inverted Hammer Candlestick

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 in this instance is a resistance area.

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

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

Shooting Star Candlestick

This is a bearish reversal candlestick pattern. It forms at 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 down to close near the open.

Shooting Star Candle

Technical Analysis of Shooting Star Candle

A sell is completed when a candlestick closes below the neck-line, this is opening of the candle on 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 price on the recent high.

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