Inverted Hammer vs Shooting Star: The Mirror Principle
Here's the truth: these are the same candle. Small body, long upper wick. But Inverted Hammer appears at support (bullish). Shooting Star appears at resistance (bearish). Without context, you cannot identify which pattern you're looking at.
Visual Structure
Inverted Hammer
- •Small body at bottom of candle
- •Long upper wick (2x body minimum)
- •Little to no lower wick
- •After downtrend → bullish reversal
Shooting Star
- •Small body at bottom of candle
- •Long upper wick (2x body minimum)
- •Little to no lower wick
- •After uptrend → bearish reversal
Notice: The visual structure is identical. The ONLY difference is the context (support vs resistance, downtrend vs uptrend). This is why pattern recognition without context is worthless.
When Each Pattern Works
| Factor | Inverted Hammer | Shooting Star |
|---|---|---|
| Best Location | At support after downtrend | At resistance after uptrend |
| Direction | Bullish reversal | Bearish reversal |
| What Upper Wick Means | Buyers tested higher, pulled back, but still holding | Buyers tested higher, got rejected hard |
| Volume Requirement | Above average = buyers showing strength | Above average = sellers showing strength |
| Win Rate (Correct Context) | ~55% at support | ~60% at resistance |
| Fail Rate (Wrong Context) | ~35% at resistance | ~30% at support |
Inverted Hammer: Success vs Failure
When It Works (~55%)
- ✓Location: At established support level
- ✓Market Regime: After downtrend, buyers testing higher
- ✓Order Flow: Volume above average
- ✓Confirmation: Next candle closes bullish
When It Fails (~35%)
- ✗Location: At resistance (wrong context)
- ✗Market Regime: In strong downtrend continuation
- ✗Order Flow: Below average volume (weak signal)
- ✗Confirmation: Next candle bearish or neutral
Shooting Star: Success vs Failure
When It Works (~60%)
- ✓Location: At established resistance level
- ✓Market Regime: After uptrend, strong rejection
- ✓Order Flow: Volume above average (sellers present)
- ✓Confirmation: Next candle closes bearish
When It Fails (~30%)
- ✗Location: At support (becomes Inverted Hammer)
- ✗Market Regime: In strong uptrend continuation
- ✗Order Flow: Below average volume
- ✗Confirmation: Next candle bullish (invalidates pattern)
The Mirror Principle
This is the second example of the Mirror Principle: same candle structure, opposite context, opposite meaning.
✓ Correct Context
- • Inverted Hammer at support = bullish reversal attempt
- • Shooting Star at resistance = bearish rejection
- • Context determines which pattern it is
✗ Wrong Context
- • Same candle at wrong location = pattern name changes
- • Inverted Hammer at resistance becomes Shooting Star
- • Win rate flips from 55% to 30%
Key takeaway: If you see this candle shape and don't know if it's at support or resistance, you don't know which pattern it is. That's why "pattern recognition" without market structure is worthless.
Frequently Asked Questions
Why is Inverted Hammer bullish if the upper wick shows rejection?
Context. At support after a downtrend, the upper wick shows buyers tested higher prices. Even though they got pushed back down, the fact that buyers are trying means potential reversal. At resistance, the same upper wick is pure rejection.
Is Shooting Star more reliable than Inverted Hammer?
Slightly. Shooting Star at resistance (~60%) is more reliable than Inverted Hammer at support (~55%). Rejection at tops tends to be sharper than reversals at bottoms. But both need proper context to work.
What if I can't tell if it's support or resistance?
Then don't trade it. If you're not sure whether you're at support or resistance, you don't know if the pattern is bullish (Inverted Hammer) or bearish (Shooting Star). Skip the trade. Market structure clarity comes first.
How is this different from Hammer vs Shooting Star?
Hammer vs Shooting Star use lower vs upper wicks (opposite wick locations). Inverted Hammer vs Shooting Star both have upper wicks (same wick location, but different context). Both pairs demonstrate the same principle: context determines pattern meaning.
Learn More
Deep Dive Articles
Candlestick Patterns for Beginners: Reading the Language of Price
Learn essential candlestick patterns from doji to engulfing. Understand what each candle tells you about buyers, sellers, and market momentum.
10 min readEngulfing on $TSLA: When the Best Trade is No Trade
Not every Engulfing is tradeable. Learn when to pass on setups like this $TSLA example that went against the trend.
2 min readHammer Bull Trap on $NVDA: A Failed Breakout Lesson
Learn how to spot a bull trap in Hammer patterns. Real $NVDA example showing warning signs and how to avoid counter-trend traps.
2 min read