Shooting Star Candlestick Definition and Tactics

What is a Shooting Star Candlestick?

Shooting Star candlestick is a type of candlestick where the open low and close are roughly the same price; it is also has a long wick associated. Length of the wick should be at least twice of the size of the body.

Underlying Psychology of the Shooting Star

In this case,during the session buyers keep pushing the prices up. Towards the end of the session, suddenly sellers appeared and bought the price downwards that it closed near to open leaving a long upper shadow. This is the first sign of trend reversal in an uptrend.

Example of How to Use a Shooting Star

Shooting Star Candlestick
Shooting Star Candlestick Example: makecashworks.com

How to Trade Shooting Star

Decision: In case of Shooting Star,traders should start looking for selling opportunities, sell price should be around the close price of the candle.

Stop loss: What if the market reverse its direction after printing the shooting star ? The high of the candle will act as stop-loss in case that happen.

Main Points to Consider

  • Shooting star with long upper shadow and volume works better.
  • If Shooting star appears after a uptrend,at resistance or after a Long white Maburozu candle, odd moves in your favor.

Beginner in Candlestick? Checkout below articles

Hope is a bogus emotion that only cost you money.

Jim Cramer

7 thoughts on “Shooting Star Candlestick Definition and Tactics

  1. Aw, this was an exceptionally nice post. Taking the time and actual effort to make a really good article… but what can I say… I put things off a whole lot and don’t seem to get nearly anything done.

    Like

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