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Shooting Star

A small body near the bottom with a long upper wick at the top of an uptrend — buyers were rejected at the high — a bearish reversal warning.

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The Shooting Star has a small body near the session low and a long upper wick — at least twice the body. It occurs at the top of an uptrend. The pattern is the bearish counterpart to the Inverted Hammer.

Buyers pushed price dramatically higher during the session, but sellers appeared in size and drove price back down near the open. That rejection at the high is the warning shot. A bearish confirmation candle the next session solidifies the setup. The smaller the body and the longer the upper wick, the stronger the signal.

Example

A momentum stock hits an all-time high and prints a Shooting Star right at a prior gap-fill level. The next session opens inside the body and closes bearish — traders short with a stop above the Shooting Star's high.

#bearish#reversal#single-candle

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The thin lines above and below a candle's real body, marking the session's high and low extremes beyond the open/close range.

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