What is a shooting star candlestick pattern?

The Shooting Star candlestick formation is viewed as a bearish reversal candlestick pattern that typically occurs at the top of uptrends. The Shooting formation is created when the open, low, and close are roughly the same price. Also, there is a long upper shadow, generally defined as at least twice the length of the real body.

What is a shooting star pattern?

The shooting star pattern is one of the most common and popular candlestick patterns. With their clear and colorful way of representing market action, candlestick charts have come to dominate among new traders who wish to spot patterns in the market. A shooting star is a single-candlestick pattern that forms after an uptrend.

Should you use a stop-loss order when trading the shooting star candle pattern?

You should always use a stop-loss order when trading the shooting star candle pattern. After all, nothing is 100% guaranteed in stock trading, and you may experience false signals when trading the shooting star pattern. For this reason, place the shooting star candle pattern above the upper wick of the pattern. 3) Taking Profits

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?