SHOOTING STAR : SINGLE CANDLESTICK BEARISH REVERSAL PATTERNS

Shooting Star is an important candlestick formation in trading chart.

Nature – A bearish Single Candle Reversal Pattern which is relevant when forms at the top of uptrend and can indicate short to long term trend reversal after confirmation.

Real Body – It can be either red or green. Red Shooting Star is more bearish than the green Shooting Star.

Upper Shadow – The upper shadow is at least 2 times the size of body.

Lower shadow – Ideally no lower shadow but a very small shadow can be acceptable.

shooting star candlestick

 

Set up – There must be an uptrend.

The Shooting Star, ideally gaps up open from previous candle.

Confirmation of Set up – Price trading below the low of Shooting Star for aggressive traders. Price closes below the low of Shooting Star for conservative traders.

ShootingStarCSCO

Sharing a good You Tube video on Shooting star, which will further help in understanding the pattern and underlying psychology –

 

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