Shooting star
A shooting star is a candle with a small body at the bottom of its range and a long upper wick. After a rally, it signals rejection of higher prices.
It is the mirror image of the hammer. Price rises sharply during the period, then sellers drag it back near the open. The upper wick is at least twice the size of the body.
It makes sense at the top of an upward move, ideally at resistance, a previous high or a Fibonacci level. In the middle of a range, it loses most of its value.
Its counterpart at the bottom of a downtrend is the inverted hammer, which reads rather bullish. In both cases, wait for confirmation: the next close in the expected direction, or a break of the candle's low.
See also