A shooting star is just like a mirror image of a hammer candle.
First there should be a sustained up trend and then there has to be a gap up opening.
The bulls should push price higher in the initial part of the day.
Then, later in the day bears should take in the control of the stock and push prices down.
Eventually the closing price should be very close to the opening price, resulting in a candle with a small green or red body, a big upper shadow and a small or negligible lower shadow.
The upper shadow of the candle should be at least twice the length of the body.
Now a confirmation of the shooting star pattern comes if price moves below the low of the candle within next 2-3 candles.
On confirmation, a short trade should be taken with stop loss above the high of the high of the candle.
A shooting star pattern with a red body is considered slightly more bearish than one with a green body.
It is often observed that shooting star candlestick pattern acts as bearish reversal pattern and triggers a down move after an uptrend.
