A shooting star is a bearish candlestick with a long upper shadow, little or no lower shadow, and a small real body near the day’s low. The Shooting Star Candlestick Pattern looks exactly the same as the Inverted hammer, but instead of being found in a downtrend it is found in an uptrend and thus has different implications. The Shooting Star candlestick formation is viewed as a bearish reversal candlestick pattern that typically occurs at the top of uptrends.
There are three types of Star.
Today we are going to discuss shooting star.
Shooting Star Candlestick Pattern
The shooting star pattern is formed at the top of the up trend. First you will get to see the up trend. After that Shooting Star will be seen with Gap Up Open.
In Shooting Star you get small real body. Whose upper shadow is twice or more than that of the real body. That is, you get to see the long upper shadow. Real body can be both Bullish or Bearish. But it’s better if it’s bearish.
- Gap Up Open
- Upper Shadow at least twice as big as real body
- Long Upper Shadow
- Real body can be bullish or bearish, better if bearish
Trade Setup – Shooting Star Pattern
To make a position in the market with the help of shooting star pattern, you have to wait for the breakdown of the candle formed before the shooting star.
As soon as you get a breakdown of the candles made before Shooting Star. You can make your position in the market. You should place your stop loss above the high of the shooting star.
Example 1 – Shooting Star
With the help of these examples, you will get a lot of help in understanding the shooting star pattern.
Example 2 – Shooting Star
- Evening Star Candlestick Pattern
- Morning Star Candlestick Pattern
- Long Legged Doji Candlestick Pattern
- Dragonfly Doji Candlestick Pattern
- Gravestone Doji Candlestick Pattern