Bearish Shooting Star

The trading world is packed with signals, indicators, and patterns that traders use to predict market movements. One such popular pattern is the Bearish Shooting Star, a special kind of candlestick formation that can indicate a potential reversal from an uptrend to a downtrend. The shooting star is a single candlestick pattern that appears at the top of an uptrend. It is considered by a long upper shadow, a small real body near the low of the day, and no little or no lower shadow of a candle stick pattern. Fundamentally, the price gaps up significantly at the open, but selling pressure pushes it back down to close near the opening price. The longer upper shadow of the candle stick indicates strong buying pressure at the start of the trading period. However, the failure of the price to sustain these highs and successive declines suggest that sellers are exerting dominance. This type of reversal of momentum is what makes the Shooting Star a bearish signal. It is crucial to understand that a single Shooting Star never gives a guarantee of a downward movement. It is just a warning that indicates potential weakness in the uptrend. To confirm a bearish reversal, traders usually look for other bearish signals or succeeding downward movements. Undoubtedly, Shooting Star is a valuable tool for traders, but it’s not dependable. There may be a false signal, especially in volatile markets. So, it’s important to use this pattern with other technical indicators, market conditions, and fundamental analysis. Picking potential stocks during bearish shooting star patterns is always challenging, but don’t worry; the FindScan screener will help you. This is a user-friendly screener which is suitable for newbie and seasoned traders who want stock suggestions for their portfolio according to their requirements and investment strategy. This tool allows users to set all required attributes like market capitalization, P/E ratio, growth percentage, and many more to get a best-screened stock list for their portfolio. Try this advanced screener today and add some of the valuable stocks to your portfolio.