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Shooting Star – Bearish Reversal


Pattern of Price:

The Shooting formation is created when the open, low, and close are roughly the same price. Also, there is a long upper shadow, generally defined as at least twice the length of the real body.

The long upper shadow of the Shooting Star implies that the market tested to find where resistance and supply was located. When the market found the area of resistance, the highs of the day, bears began to push prices lower, ending the day near the opening price. Thus, the bullish advance upward was rejected by the bears.

Trading Strategy:

The Shooting Star is a candlestick pattern to help traders visually see where resistance and supply is located. After an uptrend, the Shooting Star pattern can signal to traders that the uptrend might be over and that long positions could potentially be reduced or completely exited.

 

 


Bearish Engulfing


Pattern of Price:

Work in progress

 

Trading Strategy:

Work in progress

 


Hanging Man


Pattern of Price:

Work in progress

Trading Strategy:

Work in progress

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