What is Shooting Star Candlestick ?
The #Shooting Star is a bearish candlestick pattern that forms during an uptrend. It signals a potential reversal in the trend, indicating that the buyers are losing their control and the sellers are starting to take over.
The #pattern consists of a single candle with a small real body located at the bottom of the overall range and a long upper shadow that is at least twice the size of the real body. The long upper shadow indicates that the #buyers were unable to maintain the #upward momentum and that the sellers were able to push the price down from the high.
What Does That Indicate ?
Traders interpret the Shooting Star as a #bearish signal because it suggests that the market has reached a point of resistance and that there are more sellers than buyers at current levels. Therefore, traders may look for additional confirmation of a #reversal, such as a bearish engulfing pattern or a break of a key support level, before initiating a #short position.
The #Shooting Star is a bearish candlestick pattern that forms during an uptrend. It signals a potential reversal in the trend, indicating that the buyers are losing their control and the sellers are starting to take over.
The #pattern consists of a single candle with a small real body located at the bottom of the overall range and a long upper shadow that is at least twice the size of the real body. The long upper shadow indicates that the #buyers were unable to maintain the #upward momentum and that the sellers were able to push the price down from the high.
What Does That Indicate ?
Traders interpret the Shooting Star as a #bearish signal because it suggests that the market has reached a point of resistance and that there are more sellers than buyers at current levels. Therefore, traders may look for additional confirmation of a #reversal, such as a bearish engulfing pattern or a break of a key support level, before initiating a #short position.