Shooting Star

AAA

DEFINITION of 'Shooting Star'

A type of candlestick formation that results when a security's price, at some point during the day, advances well above the opening price but closes lower than the opening price.

Shooting Star

INVESTOPEDIA EXPLAINS 'Shooting Star'

In order for a candlestick to be considered a shooting star, the formation must be on an upward or bullish trend. Furthermore, the distance between the highest price for the day and the opening price must be more than twice as large as the shooting star's body. Finally, the distance between the lowest price for the day and the closing price must be very small or nonexistent.

RELATED TERMS
  1. Bar Chart

    A style of chart used by some technical analysts, on which, as ...
  2. Dark Cloud Cover

    In candlestick charting, a pattern where a black candlestick ...
  3. Bearish Harami

    A trend indicated by a large candlestick followed by a much smaller ...
  4. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  5. Harami Cross

    A trend indicated by a large candlestick followed by a doji that ...
  6. Candlestick

    A chart that displays the high, low, opening and closing prices ...
RELATED FAQS
  1. How do I implement a forex strategy when spotting a Star Pattern?

    The three candlestick star patterns are commonly interpreted by traders and analysts as market reversal signals. Since all ... Read Full Answer >>
  2. How do I implement a forex strategy when spotting a Shooting Star Pattern?

    The shooting star pattern is commonly interpreted by traders as a strong bearish market reversal signal. A basic forex trading ... Read Full Answer >>
  3. How do I build a profitable strategy when spotting a Shooting Star pattern?

    The shooting star pattern is interpreted by analysts as a severely bearish market reversal signal. A potentially very profitable ... Read Full Answer >>
  4. How effective is creating trade entries after spotting a Shooting Star pattern?

    There are a number of factors that can increase the probability of making profitable trades based on identifying a shooting ... Read Full Answer >>
  5. How are Shooting Star patterns interpret by analysts and traders?

    The shooting star candlestick formation is commonly interpreted by traders and market analysts as a bearish signal of market ... Read Full Answer >>
  6. What is the difference between Hanging Man & a Shooting Star Pattern?

    The hanging man and shooting star are both patterns that appear in Japanese candlestick charting. The hanging man appears ... Read Full Answer >>
Related Articles
  1. Charts & Patterns

    The Basic Language Of Candlestick Charting

    If you want to use candlestick charting to get a sense of where a stock is headed, you need to learn how to read this unique charting language.
  2. Charts & Patterns

    Candlestick Charting: What Is It?

    Discover the components and basic patterns of this ancient technical analysis technique.
  3. Trading Strategies

    Day Trading Strategies For Beginners

    From picking the right type of stock to setting stop-losses, learn how to trade wisely.
  4. Forex Education

    Candlestick Charting: Perfecting The Art

    Take a look at continuation patterns and how they can confirm or deny trends.
  5. Charts & Patterns

    Candlesticks Light The Way To Logical Trading

    Crowd psychology is the reason this technique works. Find out how to make it work for you.
  6. Trading Strategies

    Einstein's Stock Tips: Gravity and Growth

    Can applying the theory of relativity help you pick a stock? Find out more here.
  7. Technical Indicators

    Will These High-Flying Stocks Stay Hot in 2015?

    These 10 stocks were on fire in 2014. Will they stay hot?
  8. Chart Advisor

    These REITs Are Looking Good Right Now

    These REITs are in strong uptrends and looking to go higher.
  9. Chart Advisor

    Commodity Traders are Watching These 3 Charts

    As we head towards the summer months, many commodity traders are looking to diversify their holdings and to protect themselves against inflation.
  10. Trading Strategies

    Analyzing The Market With Trend Mirrors

    Past price action can exert a powerful influence on current rallies and selloffs.

You May Also Like

Hot Definitions
  1. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  2. Productivity

    An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in ...
  3. Variance

    The spread between numbers in a data set, measuring Variance is calculated by taking the differences between each number ...
  4. Terminal Value - TV

    The value of a bond at maturity, or of an asset at a specified, future valuation date, taking into account factors such as ...
  5. Rule Of 70

    A way to estimate the number of years it takes for a certain variable to double. The rule of 70 states that in order to estimate ...
  6. Risk Premium

    The return in excess of the risk-free rate of return that an investment is expected to yield. An asset's risk premium is ...
Trading Center