What describes a Shaven Head candlestick pattern?

A Shaven Head candlestick pattern is characterized by a candle that opens or closes at the high of the session with no upper wick. This implies that the price moved up during the session but then closed exactly at the high, indicating strong selling pressure or a reversal after reaching that peak without investors willing to push the price higher.

The absence of the upper wick means there was no trading in the range above the high, which can suggest that buyers were overwhelmed by sellers as soon as they reached that price point. This pattern is often observed in bullish or bearish market conditions and signals potential reversal points, making it important for traders to incorporate into their analyses.

The other descriptions do not accurately capture the essence of the Shaven Head pattern, as they detail different characteristics of other candlestick formations. Understanding the specific defining traits of candlestick patterns aids traders in making informed decisions based on market sentiment and price action.