The Shooting Star is a popular bearish candlestick pattern that can be a powerful trend reversal signal. It is considered to be the polar opposite candlestick of a bullish Hammer. It generates the highest conviction when it is posted at the end of a decisive uptrend phase. It signifies exhaustion in the buying pressure before a reversal into a negative trend.
After the Open, the market continues to surge to a new high in the trend. There is subsequently a peak in the price with a rejection of the move. The market then falls below the Open price to then Close at or around the Low of the session. If the price then continues to fall, the formation of a new trend can take hold.
Using Shooting Stars signals
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