Shooting Star Candlestick Pattern

 What is a Shooting Star Candlestick Pattern?

A bearish reversal pattern with just one candle is known as a shooting star pattern. It develops when the price is forced upward and then promptly rejected lower, leaving a protracted upward slump in its wake. At least half of the overall length of the shooting star candle should be occupied by the long dip.





How to trade using the Shooting Star candlestick pattern?

The trading analysis for a shooting star starts with identifying that the price is trending upwards of a particular stock in the chart. When the shooting star candlestick pattern appears we have a small candle body and a big upper candlewick, which confirms the shape of the pattern and if the next candle after the shooting star is bearish. 



Now we can sell the shares after pattern confirmation. We must place a stop-loss order above the upper wick of the shooting star candle in order to be protected from an unexpected bullish move caused by high volatility in the market.

While trading using a shooting star, our maximum loss will be equal to the distance between the level we short HPQ and the level of the stop-loss order. We should always seek a target equal to three times the size of the pattern. Now we need to wait in the trade until the price action closes a candle beyond the minimum target we have set.

Advantages of using the Shooting Star candlestick pattern


  • Easy to identify the candlestick pattern
  • Logically reliable if all criteria are satisfied
  • Suitable for most of the beginner traders to gain profits

Location: India

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