CHART PATTERNS MASTERY COURSE: MODULE 4: CANDLESTICK PATTERNS | DAY 20
HAMMER AND SHOOTING STAR: The Rejection Candles
A long wick shows price was pushed back hard. Rejection is the heart of these signals.
HAMMER VS STAR
🟢 THE HAMMER (bullish)
A small body at the top with a long lower wick. Sellers pushed price down, but buyers slammed it back up. Appears at a bottom and signals a bullish turn.
🔴 THE SHOOTING STAR (bearish)
A small body at the bottom with a long upper wick. Buyers pushed price up, but sellers slammed it back down. Appears at a top and signals a bearish turn.
The inverted hammer and the hanging man are close cousins. The location in the trend decides their meaning.
TRADING THE REJECTION
WHAT MAKES A STRONG SIGNAL:
1️⃣ The wick is at least twice the length of the body.
2️⃣ It appears after a clear trend, at support or resistance.
3️⃣ The next candle confirms the reversal direction.
ENTRY, STOP, TARGET: Enter after the confirmation candle. Stop beyond the wick. Target the next support or resistance level.
DAY 20 KEY TAKEAWAYS
🔹 Hammer is bullish at a bottom
🔹 Shooting star is bearish at a top
🔹 The long wick shows rejection
🔹 Wait for the confirmation candle
Next: Day 21 | Engulfing and Harami ➡️
#Hammer #Candlesticks #ChartPatterns
HAMMER AND SHOOTING STAR: The Rejection Candles
A long wick shows price was pushed back hard. Rejection is the heart of these signals.
HAMMER VS STAR
🟢 THE HAMMER (bullish)
A small body at the top with a long lower wick. Sellers pushed price down, but buyers slammed it back up. Appears at a bottom and signals a bullish turn.
🔴 THE SHOOTING STAR (bearish)
A small body at the bottom with a long upper wick. Buyers pushed price up, but sellers slammed it back down. Appears at a top and signals a bearish turn.
The inverted hammer and the hanging man are close cousins. The location in the trend decides their meaning.
TRADING THE REJECTION
WHAT MAKES A STRONG SIGNAL:
1️⃣ The wick is at least twice the length of the body.
2️⃣ It appears after a clear trend, at support or resistance.
3️⃣ The next candle confirms the reversal direction.
ENTRY, STOP, TARGET: Enter after the confirmation candle. Stop beyond the wick. Target the next support or resistance level.
DAY 20 KEY TAKEAWAYS
🔹 Hammer is bullish at a bottom
🔹 Shooting star is bearish at a top
🔹 The long wick shows rejection
🔹 Wait for the confirmation candle
Next: Day 21 | Engulfing and Harami ➡️
#Hammer #Candlesticks #ChartPatterns