I've noticed that many traders often miss one of the most reliable reversal signals in an uptrend. It's about a pattern called the shooting star. This is one of those configurations that works if you know what to look for.

When you see this candle, you immediately understand: buyers have weakened. It forms simply — a small body at the bottom and a long upper shadow that takes up more than two-thirds of the entire height. The lower shadow is almost absent. This means the price rose high, but sellers quickly pushed it down, and the close was near the open. That’s the shooting star — a signal that the initiative is shifting to the bears.

It's especially interesting when such a pattern appears after a long rise or right at a resistance level. Then the probability of a reversal sharply increases. I’ve noticed that high volumes during the formation of this pattern confirm the seriousness of the sellers’ intentions. If volumes are low, the signal may be false.

How do I apply this in practice? First, I wait for confirmation. I don’t rush to open a position immediately after the shooting star appears. I need to wait until the next candle closes lower, then I enter the trade. I place the stop-loss above the high of this pattern — this is a basic risk management rule. I set the take-profit based on nearby support levels.

Regarding signal confirmation, I often combine the pattern with RSI or MACD. If the indicators also show overbought conditions, confidence in the signal increases. This significantly reduces the number of false entries.

A practical example: the asset is rising, reaches resistance, a shooting star forms there, and the next candle closes lower — that’s when I open a short. The stop is above the candle’s high, and the take-profit is at support. It works quite often, especially on higher timeframes where noise is less. BTC is currently trading around 77,965, and if such a pattern appears on the daily chart, it will be a serious signal to pay attention.