Shooting Star and Inverted Hammer Pattern

The Shooting Star and Inverted Hammer are two candlestick patterns commonly observed in financial markets. 

Here's an explanation of each pattern:

Shooting Star: The Shooting Star is a bearish reversal pattern that appears at the end of an uptrend. It has a distinct shape characterized by a small body near the bottom of the candlestick and a long upper shadow (wick) that is at least twice the length of the body. The lower shadow, if present, is relatively short or nonexistent. The pattern suggests that buyers initially pushed the price higher during the trading session, but then sellers took control and pushed the price back down, causing the long upper shadow. It indicates a potential trend reversal, with the possibility of a subsequent downtrend.

Inverted Hammer: The Inverted Hammer is a bullish reversal pattern that occurs at the end of a downtrend. It has a similar appearance to the Shooting Star, but with the difference that it appears after a downtrend instead of an uptrend. The Inverted Hammer has a small body near the top of the candlestick and a long lower shadow that is at least twice the length of the body. The upper shadow, if present, is relatively short or nonexistent. The pattern suggests that sellers initially pushed the price lower, but then buyers stepped in and pushed the price back up, causing the long lower shadow. It indicates a potential trend reversal, with the possibility of a subsequent uptrend.

Both the Shooting Star and Inverted Hammer patterns are considered significant when they occur after a prolonged trend and are often used by traders to identify potential reversal points. However, it's important to confirm these patterns with other technical analysis tools and indicators to increase the reliability of the signals before making trading decisions.