✍️ WHAT IS SHOOTING STAR CANDLESTICK???
A Shooting Star is a candlestick pattern in technical analysis. It forms when a stock's price jumps up, creating a long upper shadow or wick, and then falls back down, closing at or near the same price as the previous day. This pattern is considered a bearish reversal indicator, suggesting a potential downturn in the stock's price.
Here's a breakdown of the Shooting Star candlestick pattern:
- The stock's price opens and closes at roughly the same level.
- The price jumps up significantly during the day, creating a long upper shadow or wick.
- The price then falls back down, erasing most of the gains from the upward move.
The Shooting Star pattern is considered a bearish signal because it indicates that the stock's price is experiencing strong selling pressure, which could lead to a continued downturn.
Keep in mind that candlestick patterns should be used in conjunction with other technical and fundamental analysis tools to confirm trading decisions.
Note :
Malik Israr Ahmad