S&P Bearish Shooting Star

By | September 17, 2015

Everyone is familiar with the hammer candle. It has a narrow opening and closing range situated at the top end of a wide overall range, and is considered a bullish reversal candle in a down trending market. The expression is “hammer” out a bottom. The reverse of a hammer candle is called a shooting star or a “hammer down” candle. Like the hammer it reflects a strong shift in momentum but in the opposite direction, and technicians consider it a sign of rejection and a bearish reversal candle.
A shooting star formed on today’s daily chart of the S&P 500 only one day after the index broke through a key resistance level. It closed right at that level.


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