A small body near the bottom of the range with a long upper wick, appearing after a rally — buyers were rejected at the highs.
Price spiked up then sold off to close near the open, leaving a long upper shadow. At the top of an uptrend this shows demand failed and sellers took control into the close.
It signals a possible bearish reversal. Traders often wait for a lower close next candle before shorting or exiting longs.
Small body in the lower third, upper wick at least twice the body, little or no lower wick, after an up-move. Same shape as the inverted hammer but its location (after a rally) makes it bearish.
Never trade a single candle in isolation. It only carries weight with context — location at a key level, the prevailing trend, and confirmation from the next candle or from volume. On its own it is a hint, not a signal.
Reading a definition is step one. Chart Bound drills you on spotting Shooting Star and dozens of other setups on live candles, and the Daily gives you one fresh chart to read every day. Free to start.