I've noticed that many people overlook one of the most reliable reversal signals. It's about the shooting star pattern—a candlestick that often appears at the end of an upward move and signals a change in market sentiment.

Here's what happens: the price soars sharply upward, but by the close, sellers push it down. As a result, a candlestick forms with a small body at the bottom and a long upper shadow—that's our star. This configuration indicates that buyers have lost control, and the initiative has shifted to sellers.

The shooting star pattern consists of several key elements. First, the candlestick body should be small and located at the bottom. Second, the upper shadow is crucial; it should be at least twice as long as the body. Third, there should be almost no lower shadow. This combination makes the signal powerful.

What does this mean in practice? When you see such a candlestick at the end of a prolonged rally, especially near resistance levels, the probability of a reversal downward increases sharply. I usually look at trading volume—if the volume is high during the formation of the pattern, it strengthens the signal. Low volume is a reason to be more cautious.

If you decide to enter a short position after a shooting star, don't rush. Wait for the next bearish candle to close—that will confirm the signal and help avoid false entries. Place your stop-loss above the candle's high, and set your take-profit at nearby support levels.

I often combine this pattern with RSI or MACD. If the indicators also show overbought conditions, confidence in the signal increases. A shooting star at resistance plus RSI above 70 is already a serious argument for entering a trade.

Currently, BTC is around 82,000, and I am carefully monitoring pattern formations across different timeframes. If a shooting star appears at a resistance level, it could be an interesting entry point. I recommend adding this pattern to your analysis toolkit—it works more reliably than it might seem at first glance.