[05]8 Shooting Star & Window Candlestick Patterns - YouTube

So shooting star and window candlestick patterns are very interesting patterns themselves here and a

shooting star.

We'll start with that.

When you have a small real body and a long upper shadow and what it's doing is it's implying the failure

of a trend to continue its failure to close near the high, certainly the high being in that whole upward

shadow, that whole long upward line on the trading range going up.

It's not getting you near how high it got during the trading period.

The trading day, for example, it's coming back down.

So you can see in the example here, we have a green candlestick.

And if there were lots of other other ones out there before that.

So we're on a trend upward, throwing a dog just for fun.

Sometimes you'll see shooting stars after Doges.

Doty shows that there's decisiveness.

So maybe there's been a trend.

We haven't had a real, let's say, reverse or anything, but we have a dodgy saying.

There may be getting a little indecisive.

It could either keep going up or keep going down.

We've got to go sideways.

We've got to watch.

And then, boom, all of a sudden we see this shooting star and we see that basically, you know, that

there is a high established as far as that the opening, but the close is closing lower.

That's why it's a red candlestick, because the close is loing.

A close is lower than the high or the closer to the close is lower than the opening of the day.

But in that candlestick, that middle of that first red candle, you can see has that real high kind

of shooting star, kind of like the shooting star as far as the range of prices.

So there was a lot of higher prices going up there.

There was people trading in much higher prices, but it all started to come down, you know, towards

that real body there on the shooting star.

And then you want to see what happens next.

It's a good indicator that you've got a trailer of the trend and that we're going to go sideways or

start a reversal, the trend and start going downward.

So we should be shooting star.

You know, be aware that if you've been owning a security, that might be a time to get out or be wary

of that and be ready to kind of, you know, pull the trigger and take your profits.

A falling star would be the exact opposite pattern, by the way, if you were looking at, let's say,

like a falling star.

And that would be more of a bullish signal.

Where this is a shooting star is more of a bearish signal, a different type of signal in this kind

of works with our gaps.

If you looked at the lessons around gaps, is rising and falling windows.

Right.

And so really what you're seeing is it's kind of like a gap up.

It could be a breakaway gap.

It could be a runaway gap.

But there's a four rising window.

You have a basically a gap up.

And what happens is the third day and the pattern does not go down to fill the gap.

Sometimes people train.

They're like, oh, I anticipate it's going to go down because we had this gap.

And it's not really a true lot of volume behind it, not a true, let's say, breakaway gap.

So that third day, it's going to come back down as far as whether we'll be watching for and if it doesn't

come back down, then we have a true breakaway gap.

And this would be in the case of what you could call a rising window pattern, where the gap isn't filled

in, the upward trend continues.

So you're kind of looking for this pattern in this example where you have a rising window, where you

have where you have a gap and then you have that continuation of that trend.

It doesn't go back and fill that gap.

You account fills feel kind of fulfills that whole definition of a gap that we learn about our lessons

to.

Same thing with a following window.

You're really looking at a gap down, right?

We're looking at our bars from left to right.

We can see we've had some downward trend.

That's the the the red candlesticks and the falling window versus the green candlesticks and a rising

window.

So we have this candlestick now.

We have a gap and they're both red.

So we're both going downwards.

Our prices are falling.

And then the third day in the pattern does not go up to fill the gap.

Right.

It doesn't it doesn't go up and do that to to basically fill the gap and try to maintain that more overlap.

It's going to keep going down.

And so that's more of a falling window and really kind of a confirmation that the gap is a true grab

and that the trend is being really established.

Trend is happening in the trend.

It's going to continue again.

Breakaway gaps are going to look at you creating new trends.

Or this could also have been a runaway gap, which is a continuation of a previous trend that we're

not seeing on the images here.

So look at the gap lessons again to see to reinforce stuff about gaps.

But basically what's happening, rising and falling windows is the trend is going to continue after

that gap and really be established versus coming back downwards and filling that gap.

And that's what you want to watch for.