What Is Shooting Star?
A shooting star is a single-candle bearish reversal pattern with a small body near the low of the candle and a long upper wick (at least 2x the body length). It forms after an advance and signals that buyers pushed price higher during the session, but sellers took over and drove it back down — rejecting the higher prices.
How Shooting Star Works
The shooting star is essentially an inverted hammer that appears at the top of a move rather than the bottom. For validity: the upper wick should be at least twice the body length, the lower wick should be minimal, and it should appear after a meaningful advance. A red body is slightly more bearish than a green body, but both are valid.
Why It Matters for Traders
Shooting stars at resistance levels, especially on heavy volume, are strong sell/short signals. The long upper wick represents trapped buyers who entered at higher prices during the session and are now underwater by the close. These trapped buyers become future sellers when price revisits their entry, reinforcing the resistance.
