Shooting Star Candlestick Pattern
A candle with a long upper wick and small body, showing rejection of higher prices and potential bearish reversal after a rise.
Market Bias
Bearish reversal bias when forming after an upward move or rally, especially when supported by strong volume and confirmation.
- Bias: Bearish Reversal
- Reliability: Medium
- Best Timeframes: 4H, 1D, Weekly
Description
A shooting star is a single candlestick pattern with a small body near the bottom of the candle and a long upper wick. The upper wick is typically at least twice the size of the candle body, while the lower wick is very small or nonexistent.
The pattern usually forms after a rally or upward trend and signals that price rejected higher levels during the session. The candle can be either bullish or bearish in color, although bearish shooting stars are generally considered stronger.
Psychology Behind It
During the session, buyers initially push price aggressively higher, continuing the bullish momentum. However, sellers step in strongly and drive price back down near the session low before the candle closes.
This rejection of higher prices suggests that buying pressure may be weakening and sellers could be starting to regain control of the market.
Confirmation Signals
- Increase in trading volume
- Pattern forms at a major resistance level
- RSI bearish divergence
- Strong bearish candle after the shooting star
- Break below local support or market structure
- Alignment with higher timeframe bearish trend
Weaknesses & Invalidations
- Low volume during formation
- Weak downside follow-through after the candle closes
- Pattern forms in choppy or directionless conditions
- Appearing directly above strong support
- Long upper wick but weak bearish close
If price closes above the shooting star high shortly after formation, the bearish setup may be invalidated.
Best Location To Find It
- Major resistance zones
- Range highs
- After strong rallies
- Near key moving averages
- At supply zones or liquidity grabs
Example Trade Use
Traders may look for short opportunities when a shooting star forms at resistance with confirmation from volume or bearish continuation candles. Some traders wait for price to break below the shooting star low before entering a position.
Stops are commonly placed above the shooting star wick high while targets are often aimed at nearby support or previous swing lows.
Risk Management Notes
Shooting star candles should not be traded in isolation. The surrounding trend, market structure, volume, and overall context all influence the quality of the setup.
Always define invalidation levels before entering a trade and manage position sizing appropriately.