Shooting Star
Overview
The shooting star is a bearish reversal candle with a small body near the low and a long upper shadow (at least 2× the body). It appears at the top of uptrends and signals that buyers pushed price higher but sellers took control. It is the inverted version of the hammer.
Key Concepts
Long upper shadow (2× body minimum), Small real body near the session's low, Appears after an uptrend, Gap up opening adds strength (rare in 24h markets)
Entry Signals
Shooting star at resistance with high volume, Next candle closes below the shooting star's body, Bearish divergence on RSI/MACD, Prior uptrend of at least 5+ candles
Exit Signals
Stop above the shooting star's high, Target the prior swing low, Use trailing stop if the downtrend develops
Best Timeframes
4H, Daily, Weekly
Pro Tips
A shooting star that tests and rejects a key moving average (20 EMA, 50 SMA) or Fibonacci level is significantly more reliable.
More Topics in This Category
Hammer & Hanging Man
The hammer and hanging man are single-candle patterns with small real bodies and long lower shadows (at least 2× the body). A hammer appears at the bottom of a downtrend (bullish), while a hanging man appears at the top of an uptrend (bearish). The long wick indicates that sellers pushed price down but buyers recaptured ground.
Doji & Spinning Tops
Doji and spinning top candles signal indecision between buyers and sellers. A doji has nearly identical open and close prices, while a spinning top has a small body with long wicks on both sides. These patterns are most significant at the end of extended trends where they can foreshadow reversals.
Inside Bars
An inside bar is a candle completely contained within the range (high to low) of the previous candle. It represents a contraction of volatility and indecision. Inside bars are used as breakout setups — traders wait for price to break above or below the inside bar's range (or the 'mother bar' range) to enter.
Harami Patterns
A harami (Japanese for 'pregnant') is a two-candle pattern where a small candle is completely contained within the prior candle's body. A bullish harami appears in downtrends; a bearish harami in uptrends. Haramis signal fading momentum but require confirmation before trading.