shooting star candlestick patten

 shooting star candlestick 

1)  Formation of shooting star candlestick candle 

A shooting star candlestick is a trend reversal sign, meaning the bullish move is about to end and the market is ready to go down .

Its form in the top of the chart and in the resistance zone the important thing is where its candle is formed .

Structure of candle 

The look of this candle is like a hammer candle but inverted means the reverse of the hammer as you can see in the picture so the upper shadow is longer than the body 3 to 4 times .and the small body .the colour of the candle is not important it may be green or red so the colour of the candle is not that much important .

Psychology of the candle   

Psychology behind this candle is the bulls are loose the control from the market and sellers are back to the market and start selling the stocks long shadow represents the fast bulls are try to get up market but seller are come and try to suppress the price so fast the price goes up and then the seller are come and price is start falling and the price is  close near to the opening price .

How to trade the shooting star candlestick candle 

When you see an shooting star candlestick candle so fast to see where it formed it helps you to plan your trade ,if the candle is formed in the resistance zone so the stop loss is the top of the shadow and the target depends on the support zone . 

Risk management 

Try to get 1:2 point and follow your rules when the price is het the target trail  the stop loss to the target point try to capture more points ,run you winners and cut your losses .if you trade as the basis of these candles the win percentage is high .