Shooting Star Candlestick Pattern

The Shooting Star is a key candlestick pattern that signals the end of an uptrend. It looks like a small body with a long upper shadow, and very little or no lower shadow. This pattern often appears at the peak of an uptrend and can indicate a potential reversal.

How to Identify the Shooting Star:
1) Long upper shadow: The upper shadow should be at least twice as long as the body.
2) Gap up: Price opens higher than the previous day’s close.
3) Small body near the bottom: The body of the candle is small and near the bottom of the price range for the day.
4) No lower shadow: The lower shadow is very short or nonexistent.

What It Means:
The market opens strong and pushes higher during the day, but by the end, the price falls back down, showing that sellers are starting to take control. This could indicate that the uptrend is losing momentum and a reversal might be near.

Confirmation:
Look for a bearish candle or a gap down the next day to confirm the Shooting Star pattern.

Key Insights:
1) The longer the upper shadow, the stronger the potential for a reversal.
2) A gap up followed by a Shooting Star can signal an even stronger reversal.
3) High volume on the Shooting Star day can increase the chances of a significant price change.

Example with AARTIIND (Daily Chart) 📊:
This is a daily time frame chart of AARTIIND, where a Shooting Star pattern is forming at the top of an uptrend. This visual example will help you better understand how the pattern works in real market conditions.