PATTERN: REVERSAL

TREND: BEARISH

RELIABILITY: LOW /

MODERATE


 How to identify it:
·  Small real body at the lower end of the trading range

·  Prices gap open

·  Upper shadow usually at least three times as long as the real body

·  No (or almost no) lower shadow

What it Means:

The market gaps open above the previous day's close in an uptrend. It rallies to a new high

then loses strength and closes near its low: a bearish change of momentum. Confirmation

of the trend reversal would by an opening below the body of the Shooting Star on the next

trading day. If the open and the close are identical, the indicator is considered a

Gravestone Doji. The Gravestone Doji has a higher reliability associated with it than a

Shooting Star.