Shooting Star Candlestick Pattern

Inverted Hammer Bullish Candle Patterns

Inverted Hammer Candlestick Pattern and Shooting Star Candlestick Pattern candles look alike and similar. These candlesticks have a long upper shadow and a short body at the bottom. Their colour doesn't matter. What matters is the point at 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 price reversal trade pattern while shooting star candle is a bearish price reversal trade pattern.

Upwards Trend Reversal - Shooting Star Candles

Downward Trend Reversal - Inverted Hammer Candlesticks

Inverted Hammer Bullish Candlestick Pattern

Inverted Hammer Candle Pattern and Shooting Star Candlestick Pattern Chart Patterns

Inverted Hammer Candle

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

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

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

Inverted Hammer Candle

Analysis of the Inverted Hammer Candlestick

A buy is confirmed when a candle closes above neck line, this is opening of candlestick on left side of the pattern. The neck line 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 most recent low.

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

Shooting Star Candlestick

This is a bearish price 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 & price then rallied upwards but was pushed & forced back downwards to close near the open.

Inverted Hammer Bullish Candlestick - How Do I Read Shooting Star Candlesticks Pattern?

Shooting Star Candle

Technical Analysis of the Shooting Star Candlestick

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

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

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

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