Shooting Star candlestick pattern
bearish reversal signal · 1 candle · reliability 4/5
A bearish single-candle reversal pattern at the end of an uptrend, with a small lower body and a long upper wick.
The Shooting Star forms near the end of an uptrend after buyers push price higher, but sellers drive it back down sharply. Its body sits in the lower third of the candle, while the upper wick is at least twice the size of the body. The pattern signals that buying momentum has faded. Its name refers to a star that shoots upward and then falls back down.
What does it signal? A single-candle reversal signal at the top of an uptrend — a small lower body with a long upper wick. Buyers tried to push price higher, but sellers forced it back down.
When is it reliable? At resistance, with above-average volume, and when the next period confirms with a red close. Higher time frames such as daily and 4-hour charts tend to produce stronger signals.
When to avoid it? In sideways markets, where a Shooting Star is often just noise. In a downtrend, the same shape is an Inverted Hammer with bullish meaning — do not confuse the two.
Anatomy and identification rules
Candle anatomy
- 1
Small body in the lower third of the candle
- 2
Long upper wick — at least twice the size of the body
- 3
Lower wick is short or absent
- 4
Red body is preferred, but a green body is also acceptable
Identification rules
- Valid only near the end of an uptrend
- The upper wick is at least twice the size of the body
- The lower wick is no more than 25% of the body
- A red body gives a stronger signal than a green body
- A confirming bearish candle strengthens the setup
Pattern in chart context
What it says about the market
Context of appearance: The pattern appears near the end of an uptrend, often close to resistance. Overbought indicators and high volume strengthen the signal.
Market psychology in three steps
- 1
Uptrend continues. Price has been rising steadily, and buyers dominate. Sentiment is optimistic, with many traders expecting further upside.
- 2
Upper wick rejects price. During the period, price pushes higher, but sellers drive it back down aggressively. The long upper wick shows that buying pressure is fading.
- 3
Red candle needed. The Shooting Star alone does not confirm a reversal. A short setup becomes stronger only after the next red candle closes lower, showing that momentum has turned.
Same shape, opposite meaning
The Shooting Star and the Inverted Hammer look identical. The difference lies in context — mistake one for the other and you enter in the opposite direction. The candle shape alone is never enough: always read the trend first, then the pattern.
Most common mistakes
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Trading it on its own. A Shooting Star is weak by itself — the confirming red close matters. Early short entries often turn into false signals.
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Confusing it with the Inverted Hammer. It has the same shape, but trend context decides the meaning. In a downtrend it is an Inverted Hammer with bullish implications; in an uptrend it is a bearish Shooting Star. Check the trend first.
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Putting the stop above the body. The stop belongs above the upper wick, with a 1–2% buffer, not above the body. A close above the wick invalidates the pattern.
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Ignoring volume. A Shooting Star is stronger when it appears with above-average volume. On low volume, it is often just noise, making entry less reliable.