Shooting Star and Inverted Hammer

Illuminating the Reversal Potential The Shooting Star and Inverted Hammer are candlestick patterns with long upper shadows and small bodies. The Shooting Star appears in an uptrend, signaling a potential bearish reversal, while the Inverted Hammer occurs in a downtrend, suggesting a potential bullish reversal.

These patterns indicate that despite initial buying or selling pressure, the opposing force emerged, causing a rejection of the extreme price level. Traders often wait for confirmation before entering trades based on these patterns, considering other technical factors and subsequent price action.