NISM Certifications · NISM-Series-XV: Research Analyst · Technical Analysis
In technical analysis, a candlestick with a very small real body, a long upper shadow and almost no lower shadow, appearing after a sustained uptrend, is called a:
The pattern is a shooting star. It forms after an uptrend with a small real body near the low and a long upper shadow, showing that higher prices were rejected by sellers, which warns of a possible bearish reversal.
- AHammer
- BShooting starCorrect
- CHanging man
- DBullish marubozu
Explanation
A shooting star has a small body near the low of the session and a long upper shadow, showing buyers pushed prices up but sellers rejected the high. After an uptrend it signals possible reversal. A hammer and hanging man have long lower shadows, and a marubozu has no shadows.
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