Shooting Star

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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

BREAKING DOWN '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.

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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 >>

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