The Ultimate Guide to Shooting Star Candlestick Patterns

Last updated: January 4, 2024

Shooting Star Pattern

This pattern appears like an upside-down hammer and can signal a potential bearish reversal after a bullish run:

The pattern shows that the market couldn't sustain the highs seen throughout the trading day and closed near the session's open.

Chart

General Identification & Interpretation

Steve Nison is credited with bringing Japanese candlestick charting to the West. In his book "Japanese Candlestick Charting Techniques" he describes shooting star patterns with the following characteristics:

Typical characteristics

• Small candle body with longer upper shadow, resembling a shooting star
• Gap up from previous trading day is ideal but not necessary
• Occurrence after a market rally

Examples of use as a trading indicator

• Potential bearish reversal signal after bullish run

More for beginners

Check out our quick start guide to candlestick charting for more information if you are new to candlestick charting!