Shooting Star patterns are interpreted as a bearish reversal pattern. Shooting stars appear in up trends but are a bearish candle. These patterns look just like inverted hammer candlesticks but are found near resistance levels. They are typically red or black on stock charts. Look for price to fall below candle to confirm bearish direction.
What is a shooting star?
A shooting star is a specific technical analysis formation or pattern that occurs in candlestick charting. It is interpreted as signaling an impending bearish reversal to the downside.
What is the bullish version of the shooting star pattern?
The bullish version of the Shooting Star formation is the Inverted Hammer formation that occurs at bottoms. Another similar candlestick pattern in look and interpretation to the Shooting Star pattern is the Gravestone Doji. Where Can I Trade Commodities?
What is an inverted Shooting Star?
The inverted shooting star is a bullish analysis tool, looking to notice market divergence from a previously bearish trend to a bullish rally. An inverted shooting star pattern is more commonly known as an inverted hammer candlestick. It can be recognized from a long upper shadow and tight open, close, and low prices — just like the shooting star.
