Definition
Shooting Star
A shooting star is a bearish reversal candlestick with a small body at the bottom and a long upper wick, found after a rally.
The long upper shadow shows that buyers drove the price up during the session but sellers slammed it back to close near the low, signalling that the rally may be running out of steam. Appearing at the top of an uptrend, it warns of a possible reversal — the mirror image of the hammer.
NSE traders watch for a shooting star on Nifty, Bank Nifty, or stocks near a resistance zone or after a strong run-up, confirming with a lower close on the next candle before going short or booking longs. As always, context and volume strengthen the signal.
Related terms
- DojiA doji is a candlestick with a tiny or absent body, signalling indecision between buyers and sellers.
- HammerA hammer is a bullish reversal candlestick with a small body at the top and a long lower wick, found after a decline.
- Engulfing PatternAn engulfing pattern is a two-candle reversal where the second candle's body completely swallows the first.
- Support and ResistanceSupport is a price level where buying tends to halt a fall; resistance is a level where selling tends to cap a rise.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.