A Shooting Star is a bearish cand pattern that appears on a stock chart and indicates a potential reversal in the current uptrend. It is characterized by a small real body (often white or green) with a long upper shadow that is at least two times greater than the real body.The pattern forms when the price of a stock opens at its high for the day and then closes near its low for the day, with a long upper shadow showing that the bears were able to push the price down from the day's high. This suggests that the bulls were in control at the beginning of the day, but the bears took over and pushed the price down, indicating a potential reversal in the uptrend.An example of a shooting star pattern would be if a stock opens at $50, reaches a high of $55, but closes at $48, with a long upper shadow showing that the bears were able to push the price down from the day's high. This pattern suggests that the bulls were in control at the beginning of the day, but the bears took over and pushed the price down, indicating a potential reversal in the uptrend.It's important to note that the shooting star pattern is considered a bearish reversal pattern, but it's not a definite indication that a downtrend will happen, it's just a signal to be cautious and consider other indicators before making a trade decision.Also, it's important to keep in mind that no single indicator or pattern can predict market movements with certainty, so it's always recommended to use multiple technical and fundamental analysis to make a sound investment decision.
