Inverted Hammer Candlestick Pattern

Inverted Hammer Bullish Stocks Candle Patterns

Inverted Hammer Candlestick Pattern and 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 stocks trend (star) or the bottom of a market stocks trend (hammer).

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

Upward Stocks Trend Reversal - Shooting Star Candlesticks

Downward Stocks Trend Reversal - Inverted Hammer Candlesticks

Inverted Hammer Candlestick Pattern and Shooting Star Candlestick Pattern Stock Chart Patterns

Inverted Hammer Stocks Trading Candle

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

Inverted hammer occurs at the bottom of a down stocks trend and indicates the possibility of reversal of the downward stock trend.

Inverted Hammer Stocks Trading Candle

Technical Analysis of Inverted Hammer Stocks Trading Candle

A buy is confirmed when a candlestick closes above the neckline, this is the opening of the candlestick on the left side of this pattern. The neck line region in this acts as a resistance region.

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

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

Shooting Star Candlestick

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

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

Shooting Star Candlestick

Technical Analysis of Shooting Star Candlestick

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

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

The Shooting Star is named so because at the top of an upward market stocks trend this stocks candlestick pattern resembles a shooting star up in the sky.