Shooting Star Candlestick

The shooting star forms after an uptrend. It has a small body near the bottom of the candle and a long upper wick (at least twice the body length). It shows that buyers pushed price higher, but sellers rejected those highs and pushed price back down. It signals potential exhaustion and reversal.

1. Small body at the lower end of the candle.
2. Long upper wick (at least 2x body length).
3. Little or no lower wick.
4. Forms after an uptrend. Can be green or red; red is slightly more bearish.

Enter short after confirmation—e.g. the next candle closes lower. Place stop loss above the shooting star's high. Target the nearest support. Studies show shooting stars produce bearish reactions about 54% of the time on major pairs.