What is a Shooting Star Candlestick Pattern?
Shooting Star is a reversal candlestick pattern. It comes after an uptrend and it shows that the market tried to rally (up) and just couldn’t continue, so it had to go down again.
How does a Shooting Star Candlestick Pattern look like?
Just like its name, Shooting Star pattern looks like a shooting star. A typical one with a small body and a long tail. And because our shooting star candlestick is falling down, its body is always under its tail (upper wick/upper shadow).
How can I trade using the Shooting Star Candlestick Pattern?
Shooting Star Patterns always come after an uptrend, they are reversal so the market will be expected to go down.
And since we have now a sign that the market is going to head down, we should be anticipating selling opportunities.