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 “shooting star” 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
