Shooting Star candlestick pattern

The Shooting Star pattern is a single candlestick pattern that is often considered a reversal pattern in candlestick chart analysis and appears at the top of the uptrend.

The Shooting Star pattern suggests that the buyers initially pushed prices higher, but by the end of the trading timeframe, the sellers took control, causing the price to very close at or below the opening level. Its long up shadow represents the brief control of the asset price by buyers, while the short or absent bottom shadow shows that the sellers were successful in driving prices down without much resistance. The small body of the pattern indicates indecision or a struggle between buyers and sellers.

The Shooting Star pattern is similar to the Inverted hammer, but has the opposite implication. An Inverted hammer occurs in a downtrend, suggesting a potential bullish reversal, while a shooting star occurs in an uptrend, signaling a potential bearish reversal.

Shooting Star candlestick:

• should be in uptrend
• either red or green body
• very short body (open, close and lowest prices are close relatively to each other)
• long up shadow (at least twice longer than body)
• small or not bottom shadow

The best Shooting Star pattern should be opened with a gap relatively to the previous candlestick.

Stop loss orders can be placed above the high of the Shooting Star candlestick for risk management (not trading advice).