Inverted Hammer Candlesticks and Shooting Star Candlesticks

Shooting Star Bearish Stocks Candlestick Patterns

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

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

Upward Stock Trend Reversal - Shooting Star Candlesticks

Downward Stock Trend Reversal - Inverted Hammer Candlesticks

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

Inverted Hammer Candlestick

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

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

Inverted Hammer Candlestick

Technical Analysis of Inverted Hammer Candlestick

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 neckline in this case is a resistance level.

Stop orders for the buy stocks 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 trading 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 stock trend where the open stocks price is the same as the low and stocks price then rallied up but was pushed back down 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 stocks 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 stock trend this stock candlestick pattern resembles a shooting star up in the sky.