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One of the most popular reversal candlestick patterns is definitely a Shooting Star pattern.
Characteristics of the Shooting Star Pattern
The Shooting Star candlestick formation is bearish reversal candlestick pattern which usually results in creation of the top, at the end of an uptrend. So, what elements need to be there in order for this pattern to be created ? It needs to have a very long upward wick, however the opening and closing price have to be roughly the same. Ideally, the wick, or also called a shadow, will be at least twice the length of the body.
Picture 1. Shooting star candlestick pattern (Source: OnlineTradingConcepts.com)
There are different types of the shooting star, but the closer it is to this basic textbook description the better. The candle can also be green but the effect is greater if we have a bearish candle. One of the key reasons why this pattern is so effective its because the
bears were able to reject the bulls completely plus the bears were able to push prices even more by closing below the opening price. There are two very important additional elements to be noted here:
1) the volume plays a big role here. The greater the volume it is at the highs…
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zarina avatar
zarina 31 July

Спасибо за полезную информацию !

Sennna88 avatar
Sennna88 31 July

Спасибо zarina!

777DRAKON777 avatar

спасибо

Bruno_Grunberg avatar

Something to digg...

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10/33
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INTRODUCTION
One aspect that traders should be well versed in, is spotting and trading a reversal pattern. By simple definition a reversal can be a positive or negative change against the prevailing trend. On a price chart, reversals undergo a recognizable change in the price structure. An uptrend, which is a series of higher highs and higher lows, reverses into a downtrend by changing to a series of lower highs and lower lows and a downtrend, which is a series of lower highs and lower lows, reverses into an uptrend by changing to a series of higher highs and higher lows.
In this article the discussion is how to recognise and trade reversals with a particular focus on bearish reversal patterns. The emphasis will be on the five most common chart patterns and explaining how each pattern can be approached, and what traders may want to look for when triggering the trade.
  • Bearish Engulfing Patterns

The bearish engulfing pattern is the simplest pattern to spot. It consists of a small green candlestick with tails followed by a large red candlestick that engulfs the small white one hence the name. Below are illustrations of the patterns.
Fig 1: Bearish engulfing pattern
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Mani avatar
Mani 12 Dec.

good work

ilonalt avatar
ilonalt 13 Dec.

good luck!

fullmoon avatar
fullmoon 17 Dec.

I've seen many "reversal patterns" in the past during a strong trend. Many uptrends are full of bearish reversals, and only the "last one" is working. Nonetheless, it is very profitable if you can take the false signals.

WallStreetBlog avatar

Thanks!!!

foreignexchange avatar

You should need some experience but it could be very profitable

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