Page 10 - MFX Reversal Patterns C.M
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Inverted Hammer &
Shooting Star
These candles are identified by having very small real bodies with little or no shadow to the south, and a
long shadow to the north. The shape of these formations are the same, but it is the location in the trend
that determines whether the formation is a Shooting Star (Bearish) or an Inverted Hammer (Bullish).
Inverted Hammers and Shooting Stars can have green or red
bodies – what’s important here is that the body size is small, that
the upper wick is at least twice the length of the body, and the
lower wick is negligible.
Inverted Hammer
A one-day bullish reversal pattern. In a downtrend, the open is
lower, then it trades higher, but closes near its open, therefore
looking like an inverted lollipop.
Shooting Star
A single day pattern that can appear in an uptrend. It opens
higher, trades much higher, then closes near its open. It looks just
like the Inverted Hammer except that it is bearish.
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