A shooting star is a single candle with a small body and a long upper wick, appearing after an uptrend near resistance. Buyers pushed price higher, but sellers rejected the move and forced the close back down.
It warns that the uptrend may be running out of steam.
▶ Practice the Shooting Star pattern free →It only counts after a clear uptrend. You need one candle with a small real body near the bottom of the range, a long upper wick at least twice the body, and little or no lower wick.
The strongest version forms right at a resistance level on above-average volume. The body colour matters little — a red shooting star is marginally stronger, but the long upper wick (the rejected rally) is what creates the signal.
Never short on the shooting star alone — wait for the next candle to close below the shooting star's low as confirmation.
Entry: on that confirmation (short). Stop-loss: above the shooting star's high. Target: the next support level, at a minimum 1:2 risk-reward. Risk no more than 1–2% of capital on the trade.
It is more reliable near resistance, on higher volume, and on higher timeframes; on a 1-minute chart it produces many false signals. Compare it with the bearish engulfing and evening star, which are also bearish reversals.
Trading it without an uptrend — a shooting star in a range or downtrend means nothing.
Confusing it with the inverted hammer, which is the identical shape but appears after a downtrend and is bullish. Trend before the candle decides the meaning.
Entering with no confirmation and ignoring volume. Always paper trade the setup for a few weeks before risking real money.
Is a shooting star bullish or bearish?
It is a bearish reversal pattern. It appears after an uptrend and warns that buyers failed to hold higher prices and sellers may be taking over.
What is the difference between a shooting star and an inverted hammer?
They are the same shape. A shooting star appears after an uptrend (bearish); an inverted hammer appears after a downtrend (bullish). Context decides which one it is.
How reliable is the shooting star pattern?
It is a reasonably reliable bearish signal when it forms after a clear uptrend, at resistance, with confirmation and volume. On higher timeframes it is far more dependable than on 1-minute charts.
How do you confirm a shooting star?
Wait for the next candle to close below the shooting star's low, ideally on rising volume, before entering a short.
See all patterns in our candlestick patterns guide, or jump straight into the free trainer to test yourself.