Bearish reversal1 session

Buyers pushed price well above the open and gave all of it back. The hammer's mirror image, at the top of a run.

The shape: Small body near the low, upper wick at least twice the body, almost no lower wick

A session that traded far higher than it finished. The long upper wick says a price was reached and rejected inside the day.

As with the hammer, the body's colour matters less than the distance between the high and the close.

The chart marks it only after an advance and only at a resistance zone or the high of the recent window — a long upper wick in the middle of a range is a wide session, not a rejection.

The rejected high is the level. It is a price the market reached and could not hold, and it is dated, which makes it more useful than a round number nearby.

Confirmation is the following session closing below the star's body. Trading back above the wick's high says the rejection failed.

On the chart: a triangle below the bar for a bullish reading, above it for a bearish one, a diamond for indecision. Hover any mark to see the pattern and what qualified it — the level it formed at and the move it followed.

For a covered call on shares you hold, a rejected high is a reference level with history: a price the market tested and declined to pay. Whether it belongs anywhere near your strike depends on your basis and the blended breakeven of the name, which the candle knows nothing about.

For a put seller, a shooting star at resistance is mostly a statement about timing: the pullback that makes entries attractive has not happened yet.

Like everything in this guide, these are descriptions of conditions and reference levels — context for your own decisions, not instructions to trade.