The Shooting Star candlestick pattern at the top

The Shooting Star candlestick pattern at the top is a potential bearish reversal signal that forms after an uptrend or a strong price rally. It has a small real body near the lower end of the candle, a long upper wick, and little or no lower wick. This formation indicates that buyers initially pushed the price higher, but sellers entered strongly and forced the price back down, showing rejection at higher levels and weakening bullish momentum. When a shooting star forms near a strong resistance zone, psychological resistance, or trendline resistance, its significance increases. However, traders should wait for confirmation from the next candle, preferably a bearish candle breaking below the shooting star’s low, before considering a possible downside move. Higher volume and weakness in the overall trend can further strengthen the bearish signal. Technical Analysis | Educational Purpose Only | Not Investment Advice.