A Shooting Star displays market rejection of higher prices
The japanese would say : "There is trouble overhead"
Not as strong of a signal as the Bearish Engulfing or the Gravestone Doji
Bearish reversal pattern
Must appear after an uptrend
Small real body green or red
Stronger signal if the body gaps up from the previous candle
Upper shadow at least twice the size of the real body
Lower shadow very small to non existent
Red Shooting Star slightly more bearish
The high of Shooting Star is considered resistance
Needs confirmation with a bearish candle closing lower or gapping down the next session
Below is a Shooting Star at resistance followed by a red Marubozu
The japanese would say : "There is trouble overhead"
Not as strong of a signal as the Bearish Engulfing or the Gravestone Doji
Bearish reversal pattern
Must appear after an uptrend
Small real body green or red
Stronger signal if the body gaps up from the previous candle
Upper shadow at least twice the size of the real body
Lower shadow very small to non existent
Red Shooting Star slightly more bearish
The high of Shooting Star is considered resistance
Needs confirmation with a bearish candle closing lower or gapping down the next session
Below is a Shooting Star at resistance followed by a red Marubozu
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