Shooting Star Technical Analysis Patterns テクニカル分析パターン

Shooting Star Candlestick Pattern Definition

The Shooting Star is a single candlestick pattern formed when the price is increasing. To be considered a Shooting Star candle the difference between the highest price of the day and the starting price must be more than twice the size of the candle's body and there should be very little shadow or no shadow at all beneath the actual body. 

Shooting Star candlestick

In addition, traders must be careful not to mistake the Shooting Star candlestick for the Inverted Hammer candlestick, both have the same form but present traders with distinct indications. Both might be interpreted as potential trend-reversal indicators. The only difference between them is the place they take in the chart. A shooting star appears after a price gain and indicates a probable downward turning point, on the other hand, an inverted hammer appears after a price decrease and indicates a future upward trend. 

Is the Shooting Star Candlestick Bullish or Bearish?

The Shooting Star pattern is a bearish candlestick, and it is estimated to be a stronger formation as the bears are allowed to refuse the bulls and can drive the prices even lower by ending below the initial price. When the initial price and the low are approximately the same, the Shooting Star pattern is regarded as less bearish, but still negative.

Shooting Star Pattern in Up and Down Trends

This pattern indicates a possible price peak and reversal, when the candle appears after three or more consecutive rising candles with more significant highs, it is most effective. Even if a few recent candles were bearish, they might develop amid a period of generally increasing prices. If the Shooting Star is detected after an upswing the indicator is stronger as it alerts the trader of a possible new decline. 

What is the Inverted Shooting Star Candlestick?

The Inverted Shooting star candlestick pattern is a bullish reversal pattern that forms after a downtrend. It is characterized by a small real body, a long lower shadow, and little or no upper shadow. The long lower shadow indicates that the price of an asset reached a low point during the period, but then closed higher, near its opening price. This suggests that the bulls took control and pushed the price up.

The difference between the shooting star and the inverted shooting star candlestick patterns is that the shooting star is bearish, and the inverted shooting star is bullish. Also, the long shadow is at the bottom of the inverted shooting star candlestick pattern and at the top of the shooting star candlestick pattern. 

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