What is a Shooting Star Candlestick?

What is a Shooting Star Candlestick?

A Shooting Star is a bearish reversal candlestick pattern that forms during an uptrend. It features a small body at the bottom with a long upper wick, indicating that buyers pushed prices higher but sellers overpowered them, driving prices back down. This rejection of higher prices signals potential reversal.

Shooting Star Characteristics

• Long upper wick: At least 2x the body length
• Small body: Near the low of the candle
• Little to no lower wick: Close near the low
• Location: Appears after uptrend at resistance
• Color: Can be red or green, pattern shape matters most

Trading the Shooting Star

• Confirmation: Wait for next candle to close lower
• Entry: Short below the Shooting Star's low
• Stop loss: Above the upper wick high
• Target: Recent support or swing low

The Shooting Star is more reliable at major resistance levels or after extended uptrends. The opposite pattern is the Hammer (bullish reversal).

Deep Dive

Most edges come from applying clear rules consistently. Expand your analysis beyond a single signal: add context from higher timeframes, recent volatility, session behavior, and catalysts. Define invalidation so a trade becomes obviously wrong fast, keeping losses small while letting winners compound.

Trader Checklist

• Higher‑timeframe bias aligns with the setup.
• Clear level or zone for entry with confluence.
• Pre‑defined stop beyond structure; 2–3R target.
• Session/liquidity supports follow‑through.
• No imminent high‑impact news unless planned.

Strategy Ideas

• Combine structure with momentum confirmation (break/close/acceptance).
• Use partials: scale out at first target; trail remainder.
• Journal results by session and pair to refine timing.

Risks and Limitations

• Thin liquidity widens spreads and distorts signals.
• False breaks around obvious levels—wait for acceptance.
• Overfitting indicators; keep the process simple and robust.

Example

Map bias on the daily chart, mark a zone, and wait on 1H for a close back above with rising participation. Enter on the retest; stop beyond the invalidation wick; target prior swing with room for extension. Record the outcome and context to iterate.