Candlestick patterns
Shooting star candlestick
A candle with a small body near the low and a long upper wick, appearing after a rise.
Why it works
Buyers pushed price up, then sellers took over and closed it near the low. At resistance or above equal highs it signals rejection and a possible top.
How to use it
Wait for the next candle to break the shooting star’s low, and place the stop above the wick. It works best in premium and against the end of an overextended move.
The typical mistake
Shorting a shooting star in a strong uptrend without any resistance above. One candle does not stop a trend.
FAQ
What is Shooting star in trading?
A candle with a small body near the low and a long upper wick, appearing after a rise.
How do you trade Shooting star?
Wait for the next candle to break the shooting star’s low, and place the stop above the wick. It works best in premium and against the end of an overextended move.