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Charts & Candles

Shooting star

Beginner

A small body near the bottom with a long upper wick, after a rally: higher prices were rejected.

In practice

A shooting star shows buyers pushing price up during the period and sellers driving it all the way back before the close. Traders look for it at resistance, in a supply area or just after a high has been swept.

A common plan is to enter below the candle's low once the next candle confirms, with the stop above the wick's high.

What to watch for

In a strong uptrend, long upper wicks appear regularly and price keeps climbing. The candle needs a level and a confirming close to mean more than a pause.

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