Key Takeaways
Shooting Star
A small body at the bottom of the candle with a long upper shadow (at least 2x the body). Appears at the top of an uptrend.
Market Psychology
Buyers pushed prices higher but sellers overwhelmed them, pushing price back down. Shows rejection of higher prices.
Candle Structure
Trading Setup Example
Entry, stop loss, and take profit levels.
Always wait for pattern confirmation before entering a trade.
Where This Pattern Appears
Trend context and market position.
Appears at the top of an uptrend, signals bearish reversal.
How to Identify
Small real body at or near the bottom of the range
Long upper shadow at least twice the body length
Little or no lower shadow
Appears after an uptrend
Confirmation Signals
Trading Strategy
š„ Entry
Enter short when price breaks below the shooting star low
š Stop Loss
Place stop loss above the shooting star high
šÆ Take Profit
Target previous support levels or use 1:2 risk-reward
āļø Risk/Reward
1:2
Common Mistakes to Avoid
Pro Tips
Best Timeframes
Pattern Variations
Educational Disclaimer
This content is for educational purposes only and does not constitute financial or investment advice. Trading involves significant risk and you may lose your capital. Always consult a licensed financial advisor before making investment decisions.
Frequently Asked Questions
Related Learning Resources
Related Patterns
Hanging Man
Same shape as hammer but appears at the top of an uptrend. Small body with long lower shadow indicates potential bearish reversal.
Bearish Engulfing
A large bearish candle completely engulfs the previous bullish candle. One of the most reliable bearish reversal patterns.
Dark Cloud Cover
Bearish counterpart to piercing line. Second candle opens above the first high but closes below the midpoint of the first candle.