Courses / Candlestick Patterns Masterclass

Shooting Star and Inverted Hammer

Small body, long upper wick: a warning at tops and a clue at bottoms.

A shooting star has a small body near the low and a long upper wick after an advance. It shows buyers pushed up but sellers rejected the highs.

The inverted hammer has the same shape after a decline. It is weaker and needs a strong confirming candle.

The best shooting stars form at resistance, after a strong run, and are followed by a bearish close.

Key takeaways

• Long upper wick shows rejection of higher prices
• Strongest after an advance and at resistance
• Inverted hammer needs extra confirmation

Quiz

• A shooting star shows: Answer: Rejection of higher prices. The long upper wick is the rejection.
• A shooting star is most meaningful: Answer: At resistance after a rally. Location gives it weight.
• The inverted hammer forms after: Answer: A downtrend. It shares the shape of a shooting star but appears after a fall.

Educational content, not financial advice.