Inverted Hammer Commodities Trading Candlestick Pattern

Inverted Hammer Bullish Commodities Trading Candlestick Patterns

Inverted Hammer Commodities Trading Candlestick Pattern and Shooting Star Commodity Trading Candlestick Pattern 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 commodity trend (star) or the bottom of a market commodity trend (hammer).

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

Upward Commodities Trend Reversal - Shooting Star Candlesticks

Downward Commodities Trend Reversal - Inverted Hammer Candlesticks

Inverted Hammer Commodities Trading Candlestick Pattern and Shooting Star Commodity Trading Candlestick Pattern Commodities Trading Chart Patterns

Inverted Hammer Candlestick

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

Inverted hammer occurs at the bottom of a down commodity trend and indicates the possibility of reversal of the downward commodities 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 commodities trades should be placed a few pips below the lowest commodities price on the recent low.

An inverted hammer is named so because it signifies that the commodity 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 commodity trend where the open commodities price is the same as the low and commodities 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 commodities trades should be placed a few pips above the highest commodities price on the recent high.

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