Shooting Star Candlestick Pattern

What the Shooting Star pattern means

The long upper wick shows buyers pushed price to new highs during the period, then sellers overwhelmed them and forced the close back down near the open. After an uptrend, that failed push higher suggests buyers are losing control and a reversal may follow.

How the Shooting Star is traded

• →Wait for a bearish candle the next period to confirm before acting.
• →Strongest at resistance or after a steep run up.
• →Stop goes above the shooting star's high.
• →It is the bearish mirror of the inverted hammer, distinguished by the prior uptrend.

Common mistakes

• ✕Confusing it with an inverted hammer by ignoring trend context.
• ✕Shorting the candle without confirmation.