💥 EDUCATIONAL 💥
The "Shooting Star" candlestick formation is one of the Japanese candlestick patterns that signals a potential bearish reversal. Its appearance on the chart usually marks an important resistance level or the moment when the uptrend changes to a downtrend.
Since a shooting star consists of only one candle, identifying it on the chart is quite easy: you just need to check it for several criteria. If all the criteria coincide, then the formation is real, and the probability of a price drop will increase significantly.
Characteristics of the "Shooting Star":
Firstly, it is worth noting that before the formation of the figure there should be growth, at least short-term in a few candles. Then, if the candle meets all the above criteria, we refer it to the Shooting Star and make the appropriate conclusions:
-the opening of the candle occurred with an upward gap.
-The candle body is relatively short (visually it should look like a square).
-The upper shadow of the candle is at least 2 times longer than the body.
-the lower shadow is either absent or does not exceed half the height of the body.
-colour of the candle does not matter.
Be sure to wait for a confirmation candle.
