Patterns tend to be a reliable form of technical analysis. Many patterns help day traders depict trends and reversals. The shooting star candlestick pattern is one of those patterns that can detect a shift in price direction, more specifically, a bearish reversal. Candlestick patterns serve as visual patterns to help traders decipher where price moves may be headed in the near future. When validated, they can provide an edge to any trading strategy or trading style.
Candles or bars on a chart help us see price action and participation. Each bar contains the highest price, the lowest price, opening price, and closing price for an asset.
When a specific candle presents or a series of candles, it can illustrate a story any educated day trader, swing trader, or long-term investor can read and take note of.
Since the market produces unpredictable atmospheres, seeing candle patterns or price patterns develop can provide a means to determine market behavior and price movement. This provides a trader an advantage to recognize and implement trade opportunities.

What Does a Shooting Star Candlestick Pattern Look Like?
The shooting star pattern is a one-candle pattern, which makes it visually easy to identify. Sounds simple, right?
Well, that one candle needs to have set characteristics to be defined as a shooting star, also referred to as a bearish pin bar. The shooting star pattern should consist of:
1) A Long Upper Shadow
The shooting star pattern contains a long upper shadow, also known commonly as a wick, that should be at least twice the length of the body of the candlestick. Anything shorter may invalidate the pattern.
2) A Small Body
The body of the shooting star pattern must be modest in size. This means the opening price, low price, and closing price of the candle are all close to or near the same values. The candle should be a bearish candle, meaning the closing price is lower than the opening.
It is important to note that the shooting star should have a small body and a small lower shadow, otherwise it can be compared to the Gravestone Doji.
3) A Small Lower Shadow
The shooting star pattern should have a very small lower wick containing the low price. This lower price should be near the closing price contained in the real body.

What Does a Shooting Star Candlestick Pattern Mean?
The shooting star candle is a bearish reversal candlestick pattern. The shooting star occurs specifically after an uptrend, signaling a possible turn to the downside.
The sentiment being conveyed in the shooting star candlestick is that the buyer’s attempt to push the market higher has been rejected by selling pressure.
Think of the buyers reaching for the stars in price creating the high of the wick and then gravity, or the sellers, pulling the price back down to earth! It is a good way to remember the powerful candle.
The small candle body of this single candlestick pattern tells us that there is now an agreement present between the bulls and bears since the open price, closing price and low are all near the same price values.
The shooting star candle pattern is one of many reversal patterns that exist. Other candlestick patterns such as evening star candlestick patterns, bearish engulfing candlestick patterns, and the hanging man pattern, all demonstrate possible price decline as well.

How to Trade the Shooting Star Candlestick Pattern
Candlestick patterns are known as lagging indicators. This means that a candle or series of candlesticks must complete or finish to accurately decipher their information. Although lagging, they prove to be important technical analysis tools.
When a trader sees a shooting star pattern form after an active bullish trend, that one candle pattern alone does not offer enough confluence to open a trade position. Traders should also seek confirmation from the next candle, proceeding candles, other indicators, and their trading strategy when trading the shooting star candlestick pattern.
For instance, when a shooting star forms near a resistance level or a supply zone, it has higher reliability. A candle-hitting resistance, or a supply zone, has a higher probability of rejection and price reversal.
Also, using other forms of technical indicators such as the MACD which is a trend following momentum indicator, or the RSI which detects overbought and oversold market conditions can substantiate the bearish reversal and hint lower prices are to follow.
If you are currently in a long position or option call trade expecting a price advance, a valid shooting star may warn you to vacate the trade to avoid a losing position. If you are looking to take a trade, the bearish candlestick pattern can signal a short trade or option put taking advantage of the trend reversal.

Summary: Shooting Star Candlestick Pattern
The shooting star formation is a bearish reversal candlestick pattern. The candlestick has a long upper shadow and a very small lower shadow. The shooting star’s body is modest. The close is lower than the open price, and the low is near the close.
The one candlestick pattern appears after an uptrend and demonstrates that the buyers were rejected by existing selling pressure. Shooting star patterns are a popular candlestick pattern and reliable when substantiated by other trading tools. This can be a proceeding confirmation candle, other forms of technical analysis, trend indicators, and trading strategies.
A candlestick that looks similar to the shooting star pattern is the inverted hammer pattern. However, an inverted hammer occurs after a downtrend, signaling a bullish reversal pattern.
Trading involves significant risk. This article is meant to be for information purposes only.
We advise traders to practice reading and utilizing candlestick patterns before implementing them live with real capital. Suggested practice can be via paper trading or playback features platforms such as TradingView or Think or Swim contain.
Like all candlestick patterns, when the shooting star candlestick appears, seek confirmation of the bearish candle and practice on the financial instrument you trade.
Look at how the candle performs in various time frames as well. Whether you are day-trading, swing trading, or holding your investments, practice on the time frame that best suits your trading style, so you get the best results possible.
The shooting star reversal pattern can be a beneficial candlestick pattern to take note of. So reach for those shooting stars, but be mindful of gravity!

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