Shooting Star / シューティングスター
Reference values based on Bulkowski's "Encyclopedia of Chart Patterns". Data is primarily from U.S. markets and may differ for other markets.
A single-candlestick pattern appearing at the top of an uptrend. It has a small body near the bottom, an upper shadow at least twice the body length, and virtually no lower shadow. It indicates that heavy buying was reversed by selling pressure, suggesting the end of the uptrend and a potential downward reversal. It is an inverted hammer shape.
After the shooting star is confirmed, enter short when the next candle opens as a bearish candle. Entering when price drops below the shooting star's low is also valid.
Project the upper shadow length downward from the low to determine the price target. Or target the nearest support line.
Place a stop-loss slightly above the shooting star's high (upper shadow tip).
Higher volume increases the reliability of the topping signal. Heavy volume indicates strong selling at the highs.