Shooting Star

A shooting star is a single candle with a small body near the LOW of the candle and a long upper wick at least twice the body length. It tells a story: during the period, buyers pushed price aggressively higher, but sellers stepped in and drove price all the way back down to where it opened. The long upper wick is the rejection. Shooting stars are bearish reversal signals — but ONLY at the top of an uptrend or at major resistance. A shooting star in the middle of consolidation means nothing. The context matters more than the candle itself. The signal is strongest when the candle forms at a key resistance level after an extended rally. The entry is below the LOW of the shooting star, ideally on the next candle's break. The stop is just above the upper wick. The target is the next major support level or a measured move based on the prior swing.