The shooting star pattern is formed within a single candlestick and is characterized by a long shadow above a short body and a small wick below.
The Shooting Star appears during an uptrend, but may indicate a possible price collapse. It is important to wait for the next candle to confirm the bearish reversal trading signal. That is, the maximum should remain below the pattern maximum.
If the price continues to rise after the “shooting star”, then it was a false signal and the asset has recorded a potential resistance area.
I will describe it in detail in the following posts.
Types of charts and what are their features…
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