Candlestick - shooting star pattern strategy ( A to Z ) - YouTube

a shooting star

a shooting star pattern is a bearish candlestick  with a low upper shadow little or no lower shadow  

and the small real body near the low of the day  it appears after an uptrend said differently  

a shooting star is a type of candlestick that  forms when a security opens advances significantly  

but then closes the day near the open again for  a candlestick to be considered a shooting star  

the formation must appear during a price advance  also the distance between the highest price  

of the day and opening price must be more  than twice as large as the shooting star body  

there should be little to no shadow below the  real body does the shooting star tell you a  

shooting star indicate at a potential price  top and reversal the shooting star candle is  

most effective when it forms after a  series of three or more consecutive rising  

candles with a higher highs it may also occur  during a period of overall rise in prices  

even if in a few recent candles were bearish  the difference between the shooting star and the  

inverted hammer that the inverted hammer and the  shooting star look exactly the same they both have  

a long upper shadow and small real bodies near the  low of the candle with later or no lower shadow  

the different is context a shooting  star occurs after a price advance  

and marks a potential turning point lower  and inverted hammer occurs after a price  

decline and the marks that potential turning point  higher so the limitations of the shooting staff  

one candle isn't all that significant in a major  uptrend prices are always curating so the sellers  

taking control of part of one period like in a  shooting star may not end up being significant  

at all this is why confirmation is required  selling must occur after the shooting star  

also even with confirmation there is no guarantee  the price will continue to fall or how far after  

a brief decline the price could keep advancing  in enlightenment with the longer term uptrend

and for that we use stop losses when using  candlesticks so when they don't work out  

your risk is controlled also consider using  candlesticks in conjunction with other forms of  

analysis a candlestick pattern may take on more  significances in occurs near a level that has been  

deemed important by other forms of technical  analysis that being said guys welcome to the  

end of this video thanks for watching see you  on another technical analysis in another video

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