Technical Glossary / Candlestick Patterns
Shooting Star
A small body at the low of the range with a long upper wick, after an advance.
Teaching sketch. It shows the shape, not a live quote and not a trade signal.
Definition
After a rally, price spikes higher and closes back near the open, leaving a long upper shadow at least about twice the body. Buyers could not hold the high. The same shape after a decline is an inverted hammer.
How to identify it
Rising prices into the bar. Small body near the low, long upper wick, little lower wick. A doji version is a gravestone.
Bullish reading
If the next bar closes above the shooting-star high, the rejection did not stick. The uptrend then still has the higher high.
Bearish reading
At resistance, a later close under the shooting-star low is the bearish confirmation. The high of the wick is the invalidation for a short that uses this bar.
Common mistakes
Shorting the upper wick in a strong trend without a level, and without waiting to see if the low breaks.
Limitations
One rejection wick does not make a top. Double tops and breaks of structure need more than this candle.
This note explains the term. A sketch shows the shape of the idea. Neither is a recommendation, a signal, or a comment on any security. Indicator settings and exchange conventions differ. Check the live chart and the contract specification before you use a number.