What is a Shooting Star Candlestick?
Quick Answer: A shooting star is a bearish reversal candle with a tiny body near the low and a long upper wick that appears after an uptrend. It signals buyers were rejected and selling pressure may follow when confirmed by the next candle.
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).
Related Terms
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