Bullish Candle Patterns & Bearish Candlestick Setups

Bullish Candle Patterns & Bearish Candle Patterns

Inverted Hammer Candle Pattern and Shooting Star Candle Pattern candles look alike. These have a long upper shadow & 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 trend (star) or the bottom of a market trend (hammer).

Difference is that inverted hammer is a bullish reversal silver trading pattern while shooting star candleestick is a bearish reversal silver trading pattern.

Upward Trend Reversal - Shooting Star Candles

Downward Trend Reversal - Inverted Hammer Candles

Inverted Hammer Candle Pattern and Shooting Star Candle Pattern Chart Patterns

Inverted Hammer Candlestick

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

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

Inverted Hammer Trading Candle

Technical Analysis of Inverted Hammer Trading Candle

A buy is confirmed when a candle closes above neck-line, this is the opening of the candle on the left side of this pattern. The neckline in this case is a resistance zone.

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

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

Shooting Star Candlestick

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

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

Shooting Star Candle

Technical Analysis of Shooting Star Candle

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

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

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