What does the shooting star pattern mean?

The shooting star pattern is a bearish candlestick formation that appears at the top of an uptrend. It consists of a single candlestick with a short body, little or no lower shadow, and a very long upper shadow. This pattern indicates a potential price top and reversal. The long upper shadow represents the buyers who bought during the day but are now in a losing position because the price dropped back to the open. The next candle's high must stay below the high of the shooting star and then proceed to close below the close of the shooting star. Traders may look to sell or short sell after this pattern.