What is a shooting star candle pattern?

A shooting star is a bearish candlestick pattern having a long upper shadow and no lower shadow at all. There is a difference between a shooting star and inverted hammer. One should not only rely on a candle pattern like in a shooting star for making trading decisions.

How to trade the Shooting Star Candlestick figure?

The shooting star falls into the “Hammer” candle family. There are three basic tricks for trading the shooting star candlestick figure: Sell the security after the creation of a bullish trend, a shooting star candle, and a bearish confirmation candle. Put a stop loss right above the upper candlewick of the shooting star figure.

What is a shooting star?

A shooting star is a bearish candlestick with a long upper shadow, little or no lower shadow, and a small real body near the low of the day.

Is the shooting star candle a bearish candle?

The red portion of the candle (the difference between the open and close) was so large with CSCO, that it could be considered the same as a bearish candle occurring on the next day. However, caution would have to be used because the close of the Shooting Star rested right at the uptrend support line for Cisco Systems.