A shooting star candlestick is typically found at the peak of an uptrend or near resistance levels. Shooting star candlesticks consist of a smaller real body with a longer upper wick and no lower shadow. The shooting star candlestick signals a trend reversal after an uptrend. Confirm with volume or bearish candles , trade cautiously, and use stop-loss to manage risk. The shooting star is a single bearish candlestick pattern that is common in technical analysis. The candle falls into the “hammer” group and is a first cousin of the – hanging man, hammer, and inverted hammer. If you’re unfamiliar with any of these patterns, check out our Quick Reference Guide. In this post, we will discuss the following topics: What is a shooting star candlestick pattern? How to trading shooting star candlestick patterns What is a hammer candlestick pattern How to ... A shooting star candlestick is a Japanese candlestick pattern that appears when the security price rises significantly, but the closing price falls and lands close to the opening price. The bearish shooting star candlestick pattern appears towards the end of an uptrend to indicate a forthcoming trend reversal.
