Inverted Hammer & Shooting Star Candlestick Pattern

Inverted Hammer Candlestick Pattern

Before we discuss the Inverted Hammer candlestick pattern, we must have a prior understanding of the Hammer pattern.

The “reverse of the Hammer pattern” is known as the Inverted Hammer candlestick pattern.

It is found after a downtrend.

It is treated as an indication of a trend reversal signal.

The pattern has one candle. The open, close, and low are near the low of the pattern.

 When Is The Inverted Hammer Pattern Found?

When the buyers move the commodity prices against the sellers, it gives rise to this pattern.

The substantial buying interest for technical, psychological, or fundamental reasons lies in the evidence that the commodities regain and close near the opening prices. It indicates a possible market bottom or trend change when this occurs in a downtrend resulting in a reversal pattern.

Shooting Star Candlestick Pattern

The shooting star is named after its shape. It has one candle. The open, close and low are near the low of the candlestick.

This pattern gives rise to an uptrend.

When is the shooting star candlestick pattern formed?

When the buyers move the commodity prices higher against the sellers, it gives rise to this pattern.

The substantial buying interest for technical, psychological, or fundamental reasons lies in the evidence that the commodities regain and close near the opening prices. It indicates a possible market top or trend change when this occurs in an uptrend resulting in a reversal pattern.

Inference From The Hammer And Shooting star Pattern

Both the patterns are used to identify trends.

The Inverted Hammer pattern can be treated as an entry point.

The Shooting star pattern can be treated as an exit point.

To ensure that our trading strategy is effective, it’s always recommended to mix and match the patterns and indicators.