Explanation: A long upper shadow or wick, especially when it appears after an uptrend , is a strong signal of seller dominance and potential bearish reversal. This is known as the shooting star pattern.
It means that Buyers pushed the price high during the period but were ultimately overpowered by sellers , who forced the price back down near the open or close.
However in trading , no single candle is a guaranteed signal. Waiting for the next candle to confirm the reversal helps avoid false signals or fakeouts.
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