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 does a shooting star pattern look like?

Surprisingly, the shooting star pattern looks exactly like an inverted hammer. Despite its shape, it is found in an uptrend. This article will tell you all you need to know about the shooting star pattern, including its definition, uses, interpretations, and examples.

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.

How do you know if GBP/USD has a shooting star pattern?

In approximately the center of the chart, you can see a strong, sustained up move in GBP/USD. Several candlesticks show the currency pair moving sharply higher, but then a candlestick (the one that occurs between the two red arrows pointing down) forms a shooting star pattern.