Hei guyz…
Im still in the process of learning to trade forex…
I have a question
Whats is the diff between a shooting star and hanging man…and also a hammer and a inverted hammer…
Thanks.
Cheers
As the “inverted” part suggests, they are the opposites - meaning a shooting star is an upside-down hanging man and an inverted hammer is and upside-down hammer.
I’ll leave it to the candlestick enthusiasts on the board to explain the differences in analytic implications of each.
Shooting Start
Market is characterized by uptrend. The shadow should be at least two times the length of the body. The color of the body is not important, although a black body has slightly more Bearish indications. The Shooting Star tells us that the market opened near it�s low, then strongly rallied and finally backed off to close near the opening. Shooting Star sends a warning of an impending top.
Hanging Man
We see it at a market top or during an uptrend. A small real body forms at the upper end of the trading range with a long lower shadow (The lower shadow should be at least two times the length of the body) with no, or almost no upper shadow. Hanging man shows that the close could not get back to the opening price level. This could have bearish implications.
Hammer
The market is characterized by a prevailing downtrend. A small real body forms at the upper end of a trading range with a long lower shadow (the longer the more bullish) with no or almost no upper shadow. The lower shadow should be at least two times the length of the body. The market sold off sharply during the day and then bounced back to close at, or near, the day�s high. This could have bullish implications.
Inverted Hammer
Market is characterized by downtrend. The upper shadow should be at least two times the length of the body. The real body is at the lower end of the trading range. There should be no lower shadow or a very small lower shadow. The Inverted Hammer tells us that the market opened near its low, then strongly rallied and finally backed off to close near the opening. Inverted Hammer is a bottom reversal candlestick.
Aite,
Tks alot AKforex…
I have spent much of the past year trying to find good information on candlesticks patterns and the best book I have found is “The candlestick course” by steve nison. A bit pricie at $65.00USD but vary good book.