Shooting Star
Candlestick PatternsA bearish reversal candlestick with a small body at the bottom and a long upper wick. It appears at the top of an uptrend, showing that buyers were overwhelmed by sellers.
What Is a Shooting Star?
The shooting star is one of the most recognized bearish reversal candlesticks. It forms at the top of an Uptrend with a small body near the session's low and a long upper shadow at least twice the body's length. The lower shadow is minimal or absent.
The candle tells a clear story: buyers pushed the price to new highs during the session, but sellers aggressively drove it back down to close near the open. That rejection of higher prices is a warning that the rally may be over.
How to Trade It
On a pair like EUR/USD, a shooting star at a daily Resistance level is a high-probability signal. Wait for the next candle to close below the shooting star's low before entering short. Place a stop loss above the shooting star's high (the tip of the upper wick).
The pattern is stronger when the upper wick pierces through a resistance zone and then falls back below it, creating a classic rejection.
Shooting Star vs. Inverted Hammer
These two patterns share the same shape. A shooting star forms after a rally (bearish signal). An Inverted Hammer forms after a decline (bullish signal). Misidentifying the trend context is a common mistake. Always verify the prevailing trend direction before labeling the pattern.
Related Terms
Hanging Man
A bearish reversal candlestick with a small body at the top and a long lower wick. It appears at the top of an uptrend and warns that selling pressure is building.
Inverted Hammer
A bullish reversal candlestick with a small body at the bottom and a long upper wick. It appears at the bottom of a downtrend and signals potential buying interest.
Evening Star
A three-candle bearish reversal pattern consisting of a large green candle, a small-bodied candle, and a large red candle. It signals the end of an uptrend.
Gravestone Doji
A doji candlestick where the open, close, and low are at the same level with a long upper wick. It signals bearish rejection when appearing at the top of an uptrend.