Shooting Star Complete Guide
What is Shooting Star?
The Shooting Star is a single-bar bearish reversal candlestick pattern that appears at the peak of an uptrend. Visually, it is characterized by a small real body located at the lower end of the price range, with a long upper wick and little to no lower wick. According to Steve Nison, who introduced Japanese candlesticks to the West, the upper shadow should be at least two to three times the length of the real body to signify a significant rejection of higher prices. The pattern forms when the market opens, bulls push prices to new highs during the session, but bears seize control by the close, forcing the price back down near the opening level. This price action suggests that the upward momentum is exhausted and that supply is overwhelming demand. While the color of the body is not critical, a red (bearish) body is generally considered more potent as it indicates the close was lower than the open. In terms of volume, a Shooting Star accompanied by high relative volume typically carries more weight, indicating a blow-off top or heavy distribution. Thomas Bulkowski’s research in the Encyclopedia of Candlestick Charts notes that the Shooting Star acts as a bearish reversal 59% of the time in a bull market, ranking it as a mid-tier performer. However, its performance improves when it occurs near established resistance levels. Traders should wait for confirmation on the following bar—specifically a close below the Shooting Star's body—before committing to a short position. Historically, while it provides a clear exit signal for longs, its failure rate as a standalone entry signal suggests it is best used in conjunction with other technical indicators like the RSI or MACD.
Identification Rules
- The upper shadow must be at least two times the length of the real body.
- The real body must be located at the lower end of the candle's total range.
- There should be very little or no lower shadow (wick).
- The pattern must occur after a sustained uptrend or a significant price rally.
Historical Win Rate Statistics
US
| Total Occurrences | 14 |
| T+5 Win Rate | 42.9% |
| T+20 Win Rate | 50.0% |
| T+20 Avg Return | 3.94% |
Recent Cases
| Symbol | Date | T+20 Return |
|---|---|---|
| ABNB | 2025-06-06 | -4.92% |
| AACBU | 2025-06-06 | -0.19% |
| AACB | 2025-06-05 | -0.20% |
| ACCS | 2025-06-03 | 13.89% |
| AAUC | 2025-05-27 | 10.87% |
| ABCFF | 2025-05-23 | 0.00% |
| ABXL | 2025-05-23 | -2.51% |
| ABEO | 2025-05-21 | 0.15% |
| AAVMY | 2025-05-21 | 2.92% |
| ABPWW | 2025-05-15 | -14.50% |
References
- Thomas N. Bulkowski (2005). Encyclopedia of Chart Patterns.
- Steve Nison (2001). Japanese Candlestick Charting Techniques.
FAQ
Does a green Shooting Star have the same meaning as a red one?
Both are bearish, but a red (bearish) body is considered more significant because the bears managed to force the close below the open.
What is the historical reversal rate for this pattern?
According to Bulkowski, it acts as a bearish reversal 59% of the time in a bull market, which is slightly better than random chance.
How do I confirm a Shooting Star signal?
Confirmation occurs when the next candle closes below the low of the Shooting Star's real body.
What is the difference between a Shooting Star and an Inverted Hammer?
They look identical, but a Shooting Star occurs at the top of an uptrend (bearish), while an Inverted Hammer occurs at the bottom of a downtrend (bullish).
Where should a stop-loss be placed for this pattern?
Standard technical practice is to place a stop-loss just above the high of the long upper shadow.
More Analysis
Parts of this page (FAQ, introductions) are AI-assisted. Core data and statistics are algorithmically computed. All pattern definitions are human-reviewed.
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Data source: EODHD · © 2026 KlineVision AI