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Definition

 

Bearish Shooting Star forecasts a bearish trend reversal. The Shooting Star candle has a small body and long upper shadow. There is an upward gap between the two days.

  • Trend: Reversal
  • Expected trend: Bearish
  • Previous trend: Bullish
  • Reliability: Moderate
  • Type: Bearish
  • Number: 2

Recognition

  • The market is in an upward trend.
  • The first day is a white candle.
  • The second day is a short candle with a gap in the trend’s direction.
  • The upper shadow of the second day’s candle is at least twice as long as its body.
  • The second candle has no (or only a very short) lower shadow.

Interpretation

Shooting Star simply means that the share opens at the daily minimum and after a quick increase, it closes near that minimum. The share price increase did not last long.

Important factors

Bearish Shooting Star has a moderate reliability. The colour of the second candle is irrelevant. Ideally, the Shooting Star opens with an upward gap, but it is not always the case. The formation must be confirmed. It can come from a black candle with a downward gap or a lower closing price.