Binary Signal Pattern 9

Binary Signal Pattern 9

Shooting star

The Shooting Star is a bearish top reversal candlestick pattern consisting of a single candle with a small body and a very long upper shadow and little or no lower shadow. The appearance of this candle is exactly the same as that of the inverted hammer, but it is not found in the down trend. Like an inverted hammer, it consists of a small candle in the lower body. If a stock is in an uptrend and you see a shooting star, then there is a solid chance that this trend is likely to reverse. A Shooting Star is confirmed when the next candle falls and is bearish. Once you are able to identify the shooting star, you should open a short position immediately as soon as it breaks the low of shooting star`s body. This will confirm the validity of shooting star on the financial chart.