Shooting star chart12/17/2023 The ability of a bearish inverted hammer to pressure the close of the candle below the opening price gives the bearish shooting star more power to reverse the prevailing bullish trend. And, in the case of a bullish shooting star, the closing price would be above, but near the opening price, in its close proximity. In the case of a bearish shooting star, the closing price would be below the opening price and near the low of the bar. They succeed in overcoming the bulls and drive the price back down below the opening price. However, at this stage, the bears step into the market and fight back. Once the bulls hit the climax point and hit the high of the candle, everything looks bullish. Initially, the bulls are in control as the prevailing uptrend continues to stay in motion. See below: The Psychology Behind Shooting Star To properly understand the bulls and bears battle behind the shooting star pattern, let’s examine this candlestick pattern in more detail. ![]() Here is how an actual shooting star pattern looks like on a candlestick chart: However, the bearish shooting star is more powerful because the closing price is lower than the opening price.Īnother characteristic of the bearish shooting star is that the wicks need to be at least 2-3 times the size of the body. The figure below is a good representation of a Shooting Star candlestick pattern:ĭepending on your chart settings, the real body of the inverted hammer can be either green (bullish) or red (bearish). The shooting star inverted hammer is only reliable when they occur at the end of uptrends. In technical analysis, the shooting star pin bar is made up of a single candlestick. The shooting star candlestick pattern can help you how to spot a top in the market and how to trade it properly.įirst of all, let’s just go through some basics: Shooting Star Candlestick Chart Pattern - DefinitionĪ shooting star is a bearish reversal chart pattern that is characterized by a long upper wick, little or nonexistent lower wick and a small body. The best shooting star strategy will address this issue and will show you how to catch a falling knife without cutting off our fingers. In fact, most traders do it so badly that they burn out their accounts. ![]() Very few people are good at reversal trading. Once you understand what shooting star trading is, you’ll understand why a one candle pattern has such a power to signal the reversal of a bullish trend. Make sure you hit the subscribe button, so you get your Free Trading Strategy every week directly into your email box. If this is your first time on our website, our team at Trading Strategy Guides welcomes you. This makes it a very “dangerous” pattern if it develops at the right location. Among price action traders the shooting star is also known as the Pin Bar and it has some distinctive price features. The shooting star candle strategy explores a small bearish reversal candlestick pattern that looks similar to the inverted hammer.
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