Shooting Star
A shooting star is a candle with a small body near the bottom and a long upper wick after a rise, showing that buyers pushed higher but sellers forced the price back down.
A shooting star is a single Candlestick that appears after a rise. It has a small body near the low and a long upper shadow. It shows that buyers pushed price up but sellers pushed it back, which can warn of a Reversal.
- Category
- Technical Analysis
- Reading time
- 3 min
- Also called
- Shooting star candle, Bearish shooting star
- Updated
Shooting star in plain words
A shooting star is a single candle — light or dark — with a small body, a long upper wick and little or no lower wick.1
It shows buyers pushed price up hard during the session, but sellers drove it back to close near the open, rejecting the rally.2
Location matters: the shooting star appears after an uptrend; an inverted hammer of the same shape appears after a downtrend.2
How to read a shooting star
Confirm the uptrend
The candle should form after a rise.
Measure the shadow
Check the upper wick is at least twice as long as the body.1
Check the lower end
Look for a small or nonexistent lower shadow.
Wait for confirmation
Look for a bearish candle the next session to confirm it.2
Place the stop
Place the stop just above the shooting star's high.2
Size the trade
Keep the hypothetical risk small, since single candles often fail.
Worked examples
Example 1 — Confirmed star
Reversal confirmedA hypothetical stock rises to 80, spikes to 86, closes at 80.5, then the next candle closes at 78.
| Upper shadow | 5.5 |
| Next close | 78 |
The next red candle is the bearish confirmation that strengthens the signal.2
Example 2 — No confirmation
Stopped outThe same hypothetical pattern forms, but the next candle closes higher at 83.
| Next close | 83 |
| Signal | Failed |
| Short trade | Small loss |
A short trader with a stop above the high of the shooting star is exited with a small loss.2
Example 3 — Wrong place
Different patternThe same shape forms after a hypothetical fall from 60 to 50.
| Prior trend | Down |
| Name | Inverted hammer |
After a downtrend this shape is an inverted hammer, not a shooting star.2
Shooting star vs inverted hammer
| Aspect | Shooting star | Inverted hammer |
|---|---|---|
| Prior trend | Up | Down |
| Shape | Long upper shadow | Long upper shadow |
| Signal | Bearish | Bullish |
| Needs confirmation | Yes | Yes |
Where traders use it
Tops
Spotting a possible top at Support and Resistance.
Take profit
Deciding when to Take Profit on longs.
Short entries
Planning a Short Selling with a clear stop.
Overbought checks
Pairing with Overbought and Oversold readings.
Advantages and disadvantages
Advantages
- Simple single-candle signal.
- Gives an obvious stop level above the high.
- Shows rejection of higher prices.
- Useful for managing open longs.
Disadvantages
- Often fails without confirmation.
- Easy to confuse with an inverted hammer.
- Small sample of one candle.
- Strong uptrends can absorb it.
Going deeper
Read as far as you need. Each level builds on the one before it.
Shape
Beginner
The upper wick should be at least double the body, and the candle's total range fairly large.1
Location
Intermediate
Like the hanging man, it appears at the top of an uptrend, not the bottom of a downtrend.3
Gaps
Advanced
A gap up before it makes the signal stronger, but the pattern still counts without one.1
Common mistakes
Shorting without confirmation
Wait for the next candle.
Ignoring the trend
After a fall it is a different pattern.
Stops too tight
Put the stop above the high.
Overtrading small timeframes
Noise creates many false stars.
Check your understanding
Test yourself before moving on. Each answer comes with an explanation.
Key points to remember
- A shooting star forms after a rise.
- It has a small body and a long upper shadow.
- It shows sellers rejecting higher prices.
- Confirmation on the next candle matters.
- A stop often goes above its high.
Frequently asked questions
Does colour matter?
Is it the same as an inverted hammer?
Should I short every shooting star?
Further learning
- Candlestick
Candle basics.
- Reversal
Reversals.
- Stop Loss
Stop placement.
- Support and Resistance
Key levels.
Sources
This article is written in our own words. The sources below support the specific facts, rules and figures marked with a number in the text. Links open the original publisher’s page.
- StockCharts ChartSchool. Candlestick Bearish Reversal Patterns (opens in a new tab) Checked .
- IG. 16 Candlestick Patterns Every Trader Should Know (opens in a new tab) Checked .
- IG. Japanese Candlesticks: What They Are + How to Trade (opens in a new tab) Checked .
Read more elsewhere
- Trading Metrics (our sister site): Shooting Star (opens in a new tab)
Educational content, not financial advice. Examples use hypothetical prices and simplified costs; actual fees, margin rules and regulations vary by broker, market and country. Trading Metrics is our sister site, under the same ownership; we are not affiliated with any other publisher linked above. Last reviewed . Report an error or request a source credit.