Definition
Shooting Star forms at the top of uptrends. It has a small body near the low with a long upper shadow, showing buyers pushed prices higher but sellers took control. It's the bearish counterpart to the inverted hammer. The longer the upper shadow, the more bearish.
Formula
Upper Shadow ≥ 2 × Real Body; Appears after uptrend
Example
After rising to $55, stock gaps up and rallies to $60 but closes at $56. This shooting star shows buyers couldn't sustain the highs, a bearish warning sign.
FAQ
What is Shooting Star?
A bearish reversal with a small body at the low and long upper shadow.
How do you calculate Shooting Star?
A common formula for Shooting Star is: Upper Shadow ≥ 2 × Real Body; Appears after uptrend
Why is Shooting Star important?
Shooting Star helps investors evaluate candlestick patterns and make more informed decisions.