Shooting star


    The shooting star is a bearish reversal pattern that usually occurs at the end of an uptrend, and can be identified by having a long upper wick and a small body.

    The long candle wick (1) shows that buyers initially pushed the price up, but sellers came into the market and pushed it back down, hence its bearish characteristic. It can indicate a change in the trend.

    In order to be valid, the following criteria should be fulfilled:

    • The shadow should be 2x or 3x longer than the body
    • There should only be a small or no lower wick