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Both have a small body near the bottom with a long upper wick and little lower wick, but the preceding trend flips their meaning. A shooting star forms after an uptrend and signals a potential bearish reversal, showing buyers pushed up but sellers rejected the highs. An inverted hammer forms after a downtrend and signals a potential bullish reversal. Same shape, opposite context, so always check what trend came before.

A shooting star appears at the top of an uptrend and warns of a possible bearish reversal. Its long upper wick shows price rallied strongly during the period but sellers drove it back down to close near the open, rejecting the highs. This failure to hold gains suggests buying momentum is fading. It signals probability, not certainty, so traders wait for a bearish confirmation candle before considering a short.

An inverted hammer forms after a downtrend and hints at a potential bullish reversal. Its long upper wick shows buyers attempted to push price higher during the period, and although sellers pulled it back, the buying interest is a sign that downward momentum may be weakening. It is an early warning rather than a confirmed signal, so traders look for a strong bullish candle afterwards to confirm before entering long.

For a shooting star, traders wait for a bearish confirmation candle, then consider a short with a stop above the star’s high. For an inverted hammer, they wait for a bullish confirmation candle, then consider a long with a stop below the pattern’s low. Both are more reliable at key resistance or support. On the WrPro platform CFDs are leveraged, so always set a stop-loss and control position size.

The shooting star is a bearish reversal pattern. It appears after a price rise and shows buyers lost control when sellers rejected the higher prices, closing the candle near its open with a long upper wick. This points to potential downside. However, it only reflects a shift in momentum and probability, not a guaranteed drop, so confirmation from the next candle and the overall trend remains essential.

Both have a long upper wick and appear after an uptrend, signalling potential bearish reversals, but the body differs. A shooting star has a small real body near the low of the candle. A gravestone doji has essentially no body because the open and close are almost identical, sitting right at the low. The gravestone reflects even greater indecision. Both need confirmation before you treat them as trade signals.