Question: What is the "Shooting Star" Candlestick pattern?
A Shooting Star formed at the end of an uptrend or at a resistance area has bearish reversal implications.
Traders enter the market with long positions but eventually the sellers’ pressure overcomes buyers’ pressure and the candlestick closes at the lower area of the Shooting Star.
The small body and the long upper shadow reveals the weakness of the bulls who are unable to maintain the upward move.
As buying pressure pulls prices to higher levels in the course of the upward move, bullish demand drives prices higher – rallying as a result of long positions.
Even though the rally is not sustained, the shorts are not strong enough to drive the market lower.
Supply/Demand | Supply is greater than demand |
---|---|
Sentiment | Neutral |
Direction | Bearish |
Trigger | Consider selling if next candle falls below the low of the shooting star |