Hammer & Shooting Star — Rejection Extremes

Hammer (bullish rejection)

Small body near the top, long lower wick (2–3× the body). Sellers drove price way down; buyers slammed it back before the close. After a decline — especially into support — it marks absorption: the floor held. Color of the body matters less than the wick, but a green hammer is slightly stronger.

Shooting star (bearish rejection)

The mirror image: small body near the bottom, long upper wick. Buyers pushed price up; sellers knocked it all the way back. After a rally — especially into resistance — it marks supply: the ceiling held. Same confirmation rule: the NEXT candle decides whether the rejection becomes a trade.

Where they matter

A hammer in the middle of a range is noise. A hammer at a support zone that price has respected 3 times before, after a 6-day decline, on rising volume — that is a setup. Location first, pattern second, confirmation third. That ordering never changes.

Sources

• Hammer CandlestickInvestopedia
• Shooting StarInvestopedia