Shooting Star Candle 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 and 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).

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

Upward Trend Reversal - Shooting Star Candlesticks

Downward Trend Reversal - Inverted Hammer Candlesticks

Inverted Hammer Candle Pattern and Shooting Star Candle Pattern Chart Patterns

Inverted Hammer Candle

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

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

Inverted Hammer Candle

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 level.

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

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

Shooting Star Candlestick

This is a bearish reversal candle pattern. It forms at the top of a market 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.

Shooting Star Candle

Technical Analysis of Shooting Star Candle

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

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.