What Is a Shooting Star
A shooting star is a bearish reversal candlestick that appears after an uptrend. It has a small real body near the low end of the trading range and a long upper shadow, typically at least twice the body length. The lower shadow is usually very short or absent.
How to Identify a Shooting Star
Look for a candle that gaps higher, opens near the session high, and then sells off to close near the open. The long upper wick shows rejection by sellers. For confirmation, traders watch for the next candle to close below the shooting star’s body. Technical analysis resources explain how pattern context and volume strengthen the signal.
Shooting Star vs. Similar Patterns
A shooting star resembles an inverted hammer but forms at the top of an uptrend, while the inverted hammer appears at the bottom. Compared to a doji, the shooting star has a more pronounced upper shadow and a clearer bearish bias. Traders combine the pattern with other indicators to filter false signals.
