Is the Shooting Star Candle Pattern in Stock Indices Bullish or Bearish?

Shooting Star is a bearish reversal pattern. It shows up at trend peaks.

The Shooting Star candlestick pattern forms at the peak of an uptrend. Here, the opening price matches the low, and although prices initially rally upward, they reverse sharply and close near the opening level.

Shooting Star Bearish Candlesticks Pattern

Analysis of Shooting Star Candlestick Pattern

A bearish reversal sell signal forms when a candle closes under the neckline. This neckline is the open of the candlestick to the left of the shooting star pattern. Here, the neckline acts as a support level.

When selling stock trades, stop orders should be placed a few pips above the highest price on the recent high as soon as a trader decides to start trades based on this shooting star candles pattern setup. The Shooting Star candlesticks pattern setup has this name because at the top of a market trend that is going up, this candle pattern looks like a shooting star in the sky.

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