For a better understanding of this article, you should already know what Japanese Candlesticks are and all their features; for this reason, we suggest you to read this introductory article to Japanese Candlesticks: Japanese Candlestick Chart ( So that you can understand also the Ratings given to the Candlestick Patterns for the “quality” of the signal and for their frequency to “appear” on Charts).
Let’s analyse now the following Candlestick Pattern: “Shooting Star Candlestick”.
Shooting Star Candlestick
– Normally it should be a signal of Bearish reversal of the current Trend.
– It occurs during an Uptrend; confirmation is required by the candles that follow the Pattern.
– The Real Body is short, with an Upper Shadow that is very long (It should be at least the double of the Real Body); the Candle has not a Lower Shadow, but if it has a Lower Shadow that is very short.
– If it occurs near an High of the Uptrend, it’s a further confirmation of the Pattern.
– The color of the Candle doesn’t matter (Can be white or black).
– It is suggested to analyse the candles that follow the Pattern to better understand the future direction of the Prices. If the prices will fall below the Low of the Candle, that could be another confirmation of the reversal of the current Trend. While if the prices will rise above the High of the Candle, that could be a confirmation of the continuation of the current Trend.
