Inverted Hammer Candlesticks and Shooting Star Candlesticks

Bullish Stock Indices Candlestick Patterns Guide and Bearish Indices Candlestick Patterns Guide

Inverted Hammer Candlestick Pattern & Shooting Star Candlestick Pattern candlesticks look alike. These 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 stock indices trend (star) or the bottom of a market stock indices trend (hammer).

Difference is that inverted hammer is a bullish reversal stock indices pattern while shooting star is a bearish reversal stock indices pattern.

Upward Stock Indices Trend Reversal - Shooting Star Candles

Downward Stock Indices Trend Reversal - Inverted Hammer Candles

Inverted Hammer Candlestick Pattern & Shooting Star Candlestick Pattern Stock Index Chart Patterns

Inverted Hammer Stock Indices Candle

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

Inverted hammer forms at the bottoms of a down stock indices trend and indicates the possibility of reversal of the downwards stock index trend.

Inverted Hammer Stock Indices Candlestick

Analysis of Inverted Hammer Stock Indices Candle

A buy is confirmed when a candlestick closes above the neckline, this is opening of candlestick on the left-side of this pattern. Neck-line point in this case forms the resistance area.

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

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

Shooting Star Candlestick

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

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

Shooting Star Candle

Technical Analysis of Shooting Star Candlestick

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

Stop orders for the sell stock index trades should be set a few pips above the highest stock index price on the recent high.

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