Shooting star

The shooting star is a single-candle pattern which serves as a bearish reversal pattern when it occurs in an uptrend. It is formed by a long shadow with a short body attached to the lower end of the shadow. You can call it a hanging man pattern that has been turned upside down and you would not be wrong.

Shooting Star pattern

The shooting star is formed by sellers driving prices down to a point where the candle closes either slightly above or slightly below the open price of the candle (as seen in the example above). A shooting star is not to be used on its own to make a call to sell the asset. Rather, confirmation should be sought in the form of a bearish candle following it, or the shooting star forming at a resistance, or an indicator giving a bearish confirmation.