Inverted Hammer Candle Pattern

Inverted Hammer Bullish Energies Candle Patterns

Inverted Hammer Candlestick Pattern & Shooting Star 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 energies trend (star) or the bottom of a market energies trend (hammer).

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

Upward Energies Trend Reversal - Shooting Star Candles

Downward Energies Trend Reversal - Inverted Hammer Candles

Inverted Hammer Candlestick Pattern & Shooting Star Candlestick Pattern Energies Trading Chart Patterns

Inverted Hammer Energies Candlestick

This is a bullish reversal candle pattern. It occurs at the bottoms of a Energies trend.

Inverted hammer occurs at the bottoms of a down energies trend and indicates the possibility of reversal of the downward energies trend.

Inverted Hammer Energies Candle

Analysis of Inverted Hammer Energies Candlestick

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

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

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

Shooting Star Candlestick

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

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

Shooting Star Candle

Technical Analysis of Shooting Star Candlestick

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

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

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