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Clicking the links below takes you to Amazon. If you buy ANYTHING, they pay for the referral. You alone are responsible for your investment decisions. My book, Encyclopedia of Candlestick Charts , pictured on the left, takes an in-depth look at candlesticks, including performance statistics.

If you click on this link and then buy the book or anything at Amazon. The shooting star candlestick comes in two varieties, a single candle line and a two line candle. This page discusses the one candle line.

In an uptrend, a small body candle appears with a tall upper shadow and no lower one or a very small one. The candle looks like a gravestone doji but it is not a doji because the opening and closing prices are not the same. The candle looks as if price has reversed direction.

However, I still consider that "near random" performance.

Shooting star (candlestick pattern) - Wikipedia

Thus, although price reverses more often than not, do not depend on that happening. All ranks are out of candlestick patterns with the top performer ranking 1. The above numbers are based on hundreds of perfect trades. See the glossary for definitions. Day traders that I know depend on the shooting star more often than I think they should, but my statistics are based on the daily charts, not intra day ones.

I consider that "near random" performance. The overall performance is a mid list 55, where 1 is best and is worst. The best average move 10 days after the breakout belongs to shooting stars after an upward breakout in a bear market.

Price rises an average of 3. The numbers suggest that this candle looks better than it performs. If you want a few bones from my Encyclopedia of candlestick charts book, here are three to chew on.

The pages refer to the book where the tips appear. Pictured in the daily chart at A is an example of a shooting star that appears as part of a retrace in a downward price trend. Unfortunately, the downward trend is not a long one, so this is not a perfect example.

Candlestick Bearish Reversal Patterns [ChartSchool]

Price moves down from the highest peak on the chart, bottoms, and then bounces. A shooting star with a tall upper shadow, no lower one, and a small body appears. The shooting star signals a change in momentum from up to down with the bulls forcing price to a peak but the bears battling back so that price closes near where it opens. The next day, and in the coming days, price moves lower. This is an example of how a shooting star is supposed to work.

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Bulkowski's Shooting Star 1 Line. Important Results Discussion Identification Guidelines Three Trading Tidbits Example Other Examples See Also Shooting Star: Important Results Theoretical performance: Bearish reversal Tested performance: Look for a small bodied candle but not a doji with little or no lower shadow and a tall upper shadow at least twice the height of the body.

The Inverted Hammer And Shooting Star Candlestick Pattern - Market Realist

See Also There is a 2 candle shooting star, so be sure to check that one, also. Tall candles show support and resistance.

Two candlestick tips could improve profitability. Candles near the yearly low perform best. Which candlesticks appear most often the day before breakouts? Do tall candle shadows predict price turns? Tall candles at peaks and valleys. Tall candles appear at turning points.