Shooting Star Candlestick Chart Pattern

Shooting star candlestick chart pattern is a candlestick pattern which has a long upper shadow and a small body. Simple, right ?

Yea, It's simple and easy to identify on a chart.

However, Long upper shadow indicates that buyer pushed their all efforts to make up the market.

But at this time more sellers entered to the market and has able to close the period near the opening price.

It is a significant indication that sellers are more stronger than buyers.

 If sellers are stronger than  buyers then you can expect a bearish reversal.


Direction:-- Bearish or Down Trend.

Type of this pattern: reversal

Reliability on this pattern: Week.

We have already introduced you with Hammer candlestick chart pattern. The shooting star pattern is same with the hammer.

But the difference is here where are you in the market.

If you are in a down trend, then you have got a hammer. On the contrary, If you are in a uptrend, then you have got a shooting star.

We want to tell you again about the confirmation. Since it provide week signal, For this wait for a confirmation to take the signal. A bearish candle may be a good confirmation after the candlestick pattern formation.

 

Major Factor About Shooting Star Candlestick Chart Pattern...

1. Uptrend.

2. Long upper shadow. It must be twice at least as big as the real body.

3. Real body bullish or bearish. Better if it bearish.

• Candlestick Basic(You have to know)
• How to read a candlestick chart?
• Bearish Engulfing
• Bullish Engulfing
• Doji
• Evening star
• Morning star
• Dark cloud cover
• Hammer
• Hanging Man
• Harami
• Inverted Hammer
• Piercing Pattern
• Shooting star
• Tweezers Top
• Tweezers Bottom
• Windows