SHOOTING STAR CANDLESTICK PATTERN
The shooting star candle is the opposite of the hammer candle, which is a bearish reversal candle. Whenever the market is in a state of going up and keeps going up, goes above any supply zone or resistance zone forms a shooting star candle, and starts coming down from the top, then we call it a shooting star candle.
Shooting star candle is also made in two types:
1. With a green candle,
2. With a red candle,
In this shooting star red candle is more effective than the green candle, in the shooting star candle the red candle is given more importance.
In Shooting Star Candle, selling starts in that candle and the seller has control over the stock, where the opening, closing, and low price of the stock is near the same, in Shooting Star Candle 15- 20% real body. Which forms the lower side real body and 80-85% of the upper shadow.
How to trade with Shooting star candle?
What should be the entry point for trade?
Wait for the shooting star pattern to fully formation.
Confirm the pattern with the next candle price action pattern.
After candle formation, you have to enter below shooting star red candle.
You can add a Moving average and RSI indicator tool for more confirmation.
What should be stoploss for trade?
Place stop-loss order above the high of the shooting star candle.
Consider market volatility when placing a stop-loss buffer range.
Use proper position sizing to manage risk 1-2% of the total capital.
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