Glossary Term

Shooting Star

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A shooting star is a certain kind of candlestick shape in technical analysis used as a signal that the market is about to shift from bullish to bearish. Shooting stars take place at the top of established uptrends. They have a long upper wick and a very small real body with little or no lower wick. For a candle to be a shooting star its upper wick has to be at least twice the length of its body. Shooting stars indicate a shift in momentum between buyers and sellers. Within a shooting star’s period (regardless of the timeframe being used) the price rises, tops out, at which point sellers enter the market, pushing the price back down close to the candle’s opening price.

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