Shooting Star Candlestick Pattern

Inverted Hammer Bullish Candle Patterns

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

The difference is that inverted hammer candle is a bullish reversal pattern while shooting star candle is a bearish reversal pattern.

Upwards Trend Reversal - Shooting Star Candles

Downwards Trend Reversal - Inverted Hammer Candlesticks

Inverted Hammer Bullish Candlestick

Inverted Hammer Candle Pattern and Shooting Star Candle Pattern Chart Patterns

Inverted Hammer Candle

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

Inverted hammer candle occurs at the bottom of a down trend & indicates possibility of a market reversal of the downwards trend.

How Do I Read Inverted Hammer Candle Patterns Bullish or Bearish?

Inverted Hammer Candlestick

Analysis of Inverted Hammer Candle

A buy is confirmed when a candlestick closes above neck-line, this is opening of candle on leftside of this pattern. The neckline point in this case forms the resistance zone.

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

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

Shooting Star Candle

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

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

Inverted Hammer Bullish Candlestick - How Do You Read Shooting Star Candles Pattern?

Shooting Star Candlestick

Technical Analysis of Shooting Star Candle

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

Stop orders for the sell trade transactions should be set a few pips above the highest price in the recent high.

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

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