The shooting star is a bearish reversal candle with a small body near the low and a long upper shadow (at least 2× the body). It appears at the top of uptrends and signals that buyers pushed price higher but sellers took control. It is the inverted version of the hammer.
Long upper shadow (2× body minimum), Small real body near the session's low, Appears after an uptrend, Gap up opening adds strength (rare in 24h markets)
Shooting star at resistance with high volume, Next candle closes below the shooting star's body, Bearish divergence on RSI/MACD, Prior uptrend of at least 5+ candles
Stop above the shooting star's high, Target the prior swing low, Use trailing stop if the downtrend develops
4H, Daily, Weekly
A shooting star that tests and rejects a key moving average (20 EMA, 50 SMA) or Fibonacci level is significantly more reliable.
Tweezers are two-candle patterns where both candles test the same high (tweezer top) or low (tweezer bottom). The first candle extends the trend and the second candle reverses. The matching highs/lows create a visual 'tweezers' shape indicating a rejection level.
A bullish engulfing pattern occurs when a large green candle completely engulfs the prior red candle near the bottom of a trend. A bearish engulfing is the opposite — a large red candle swallows the prior green candle at the top. Engulfing patterns are among the most reliable two-candle reversal signals.
The kicker pattern is one of the most powerful two-candle reversal signals in candlestick analysis. It forms when the second candle opens at or beyond the open of the prior candle and moves aggressively in the opposite direction, effectively 'kicking' away from the previous sentiment. Kickers often occur after overnight news events or fundamental catalysts that cause an abrupt sentiment shift.
An inside bar is a candle completely contained within the range (high to low) of the previous candle. It represents a contraction of volatility and indecision. Inside bars are used as breakout setups — traders wait for price to break above or below the inside bar's range (or the 'mother bar' range) to enter.