Shooting Star Candlestick

The shooting formation is formed when the open low, and close are roughly the same price, this candle is characterized by a small body and a long upper shadow. It is the bearish version of the hammer.
Professional technicians say that the shadow should be twice the length of the real body.

when this pattern occurs in an uptrend near resistance level; it indicates a bearish reversal signal

The psychology behind the formation of this pattern is that buyers try to push the market higher, but they got rejected by a selling pressure.

Characteristics of a Shooting Star Candlestick

Color: The body of the Shooting Star may appear green (bullish) or red (bearish), but the candle color does not matter.

Shape: The Shooting Star has a small body near the low of the price range with a long upper shadow (at least twice the length of the body). The lower shadow is very small or nonexistent.

Interpretation:

• Bearish Reversal Signal: The long upper shadow shows that buyers drove prices higher during the trading session, but strong selling pressure pushed the price back down near the opening level. This suggests that the upward momentum is weakening and a reversal may be imminent.

Example of Shooting Star

The chart above shows a nice shooting star at the end of an uptrend. The formation of this pattern indicates the end of the uptrend move, and the beginning of a new downtrend.

Apply this candlestick pattern alongside support and resistance, supply and demand areas, and technical indicators

Use this candlestick pattern with support and resistance, supply and demand areas, and technical indicators