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

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.

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    The shooting star pattern is commonly interpreted by traders as a strong bearish market reversal signal. A basic forex trading ... Read Full Answer >>
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    The shooting star pattern is interpreted by analysts as a severely bearish market reversal signal. A potentially very profitable ... Read Full Answer >>
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  5. How are Shooting Star patterns interpret by analysts and traders?

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