Inverted Hammer Candlestick - Shooting Star Candlestick - Inverted Hammer vs Shooting Star Candlesticks
Inverted Hammer Bullish Candlestick - Shooting Star Bearish Candlestick - Bullish vs Bearish Candles Patterns
Inverted Hammer Candlestick Pattern and Shooting Star Candlestick Pattern candlesticks look alike. These candlesticks patterns have a long upper shadow and a short body at the bottom. Their color does not matter. What matters is the point where they appear whether at the top of a market trend (star) or the bottom of a market trend (hammer).
The difference is that inverted hammer is a bullish reversal pattern while shooting star is a bearish reversal pattern.
Upward Trend Reversal – Shooting Star Candles
Downward Trend Reversal – Inverted Hammer Candles
Inverted Hammer Candlestick Pattern and Shooting Star Candlestick Pattern Candles Chart Patterns
Inverted Hammer FX Candle
This is a bullish reversal candle stick pattern. It occurs at the bottom of a Forex trend.
Inverted hammer occurs at the bottom of a downtrend and indicates the possibility of reversal of the downward Forex trend.
Inverted Hammer FX Candle
Technical Analysis of Inverted Hammer Candle Pattern
A buy is completed when a candle-stick closes above neckline, this is opening of the candle on left side of this pattern. The neck line region in this acts as a resistance region.
Stop orders for the buy trades should be set a few pips below lowest price on the recent low.
An inverted hammer is named so because it signifies that the market is hammering out a bottom.
Shooting Star Candlestick
This is a bearish reversal candle pattern. It occurs at top of a market trend.
It occurs at the top of an uptrend where the open price is same as the low & price then rallied up but was pushed back down to close near the open.
Shooting Star Candlestick
Technical Analysis of Shooting Star Candlestick Pattern
A sell is completed when a candle-stick closes below neckline, 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 highest price on the recent high.
The Shooting Star is named so because at the top of an upwards market trend this candle pattern looks like a shooting star up in the sky.
