A shooting star candle or pin bar reversal is a bearish candlestick pattern when it appears during an uptrend on a chart. A shooting star tends to have long upper wicks and almost no lower wicks along with a candle body that is usually small. A shooting star usually happens when a stock opens and then goes much higher intra-day but reverses and closes lower near the opening price or lower. The larger the upper wick is relation to the candle body the more bearish it is as it has created new overhead resistance and shows a rejection by buyers at higher prices. 

  • A shooting star is a bearish signal and could indicate the end of an uptrend and the increased possibility of a downtrend beginning. 
  • It is bearish because it shows the rejection of higher prices and the beginning of selling pressure. 
  • If the next candle after the shooting star has a lower high and lower low it increases the probability of the end of the uptrend. 
  • Price closing back over the high of the day of a shooting star negates the bearish signal.
  • Shooting star candles are best used in confluence of other signals like overbought readings, key moving averages, or resistance zones. 
Shooting Star Candle
Chart Courtesy of StockCharts.com

By Steve Burns

After a lifelong fascination with financial markets, Steve began investing in 1993 and trading his accounts in 1995. It was love at first trade. After more than 30 successful years in the markets, Steve now dedicates his time to helping traders improve their psychology and profitability. New Trader U offers an extensive blog resource with more than 4,000 original articles, online courses, and best-selling books covering various topics.