Exact formation
Small body in the lower part and upper shadow at least twice as large, with little lower shadow.
What is happening in the market
Buyers pushed up the price, but supply rejected the advance and returned it near the open.
Where it matters
After a rise and near resistance. After a fall, the same silhouette is an inverted hammer.
How to confirm it
Subsequent close below the pattern's low.
When it is invalidated
Close above the top shadow end.
Common mistake
Sell only by shape when it appears in the middle of a range.