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Shooting Star

AnalyticsTrade Team
AnalyticsTrade Team Last updated on 26 Apr 2023

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Shooting Star

A shooting star is a type of candlestick pattern that is used in technical analysis to predict a bearish reversal in the market. The pattern is formed when a long red candle is followed by a short green candle, with the green candle closing below the open of the red candle. This pattern is seen as a sign of bearish sentiment in the market and is often used by traders to signal a potential reversal in the trend.

History of the Term

The term โ€œshooting starโ€ was first used by Japanese rice traders in the 1700s. The term was used to describe a candle that had a long body and a short wick, which was seen as a sign of bearish sentiment in the market. The term has since been adopted by technical analysts and is now used to describe a specific type of candlestick pattern.

Comparison Table

Pattern Description
Shooting Star Long red candle followed by a short green candle, with the green candle closing below the open of the red candle.
Bullish Engulfing Long green candle followed by a short red candle, with the green candle closing above the open of the red candle.

Summary

A shooting star is a type of candlestick pattern that is used in technical analysis to predict a bearish reversal in the market. The pattern is formed when a long red candle is followed by a short green candle, with the green candle closing below the open of the red candle. This pattern is seen as a sign of bearish sentiment in the market and is often used by traders to signal a potential reversal in the trend. For more information about this term, you can visit Investopedia, TradingView, and other financial websites.

See Also

  • Bullish Engulfing
  • Bearish Engulfing
  • Doji
  • Hammer
  • Hanging Man
  • Inverted Hammer
  • Morning Star
  • Evening Star
  • Dark Cloud Cover
  • Piercing Line

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