Inverted Hammer Candlesticks and Shooting Star Candlesticks

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

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 indices trend (star) or the bottom of a market indices trend (hammer).

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

Upward Indices Trend Reversal - Shooting Star Candles

Downward Indices Trend Reversal - Inverted Hammer Candles

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

Inverted Hammer Indices Trading Candlestick

This is a bullish reversal candle stick pattern. It forms at the bottom of a Indices trend.

Inverted hammer forms at the bottoms of a down indices trend & indicates the possibility of reversal of the downwards Indices trend.

Inverted Hammer Indices Candle

Technical Analysis of Inverted Hammer Indices Trading Candlestick

A buy is completed when a candle-stick closes above the neck-line, this is opening of candle on the leftside of this pattern. The neck-line in this instance is a resistance area.

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

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

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 up indices trend where the open stock indices price is same as the low & stock indices trading 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 completed when a candle closes below neckline, this is the opening of the candle stick on the left side of this pattern. The neckline in this case is a support zone.

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

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