Shooting Star
Quick Definition
A bearish reversal candlestick pattern with a small body near the low and a long upper shadow, appearing at the top of an uptrend.
Key Takeaways
- Shooting star has a small body near the low with a long upper shadow (2× body minimum)
- It appears at the top of uptrends and signals potential bearish reversal
- The long upper wick shows that buyers were initially strong but sellers took control
- Confirmation from the next candle or gap down strengthens the signal
What Is Shooting Star?
The shooting star is a single-candle bearish reversal pattern that forms at the top of an uptrend. It is characterized by a small real body near the low of the candle, little or no lower shadow, and a long upper shadow (wick) that is at least twice the length of the body. The pattern tells a story: during the session, buyers pushed prices significantly higher (creating the long upper wick), but sellers stepped in and drove prices back down near the opening level. This rejection of higher prices signals that buying pressure may be exhausting and a reversal could follow. The shooting star is the bearish counterpart of the hammer pattern. For a valid shooting star signal, it should appear after a meaningful uptrend, the upper shadow should be at least 2× the body length, and confirmation should come from a bearish candle in the following session or a gap down. The color of the body (red or green) is less important than the overall shape, though a red body is considered slightly more bearish.
Shooting Star Example
- 1After a 15% rally, a stock forms a shooting star with an upper shadow three times the body size — the next day gaps down, confirming the bearish reversal.
- 2A shooting star at a key resistance level, combined with high volume, provides a strong sell signal for swing traders.
Related Terms
Hammer
A bullish reversal candlestick pattern with a small body near the top and a long lower shadow, appearing at the bottom of downtrends.
Inverted Hammer
A bullish reversal candlestick pattern with a small body near the bottom and a long upper shadow, appearing at the end of downtrends.
Hanging Man
A bearish reversal candlestick pattern identical in shape to a hammer but appearing at the top of uptrends, warning of potential selling pressure.
Evening Star
A bearish three-candle reversal pattern consisting of a large bullish candle, a small-bodied candle that gaps up, and a large bearish candle that closes well into the first candle's body.
Doji
A candlestick pattern where the opening and closing prices are virtually equal, creating a cross-like shape that signals market indecision and a potential trend reversal.
Moving Average
A calculation that averages a security's price over a specific number of periods, smoothing price data to identify trends.
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