Quick Question - Which one of the candles represents a shooting star.?
A B or C
Actually, all of them represents a shooting star pattern. But as per the classic textbook theory, Shooting Star happens after an uptrend.
The candle in C didn’t form after an uptrend. So let’s call it a weak shooting star.
Shooting Star after a Doji. This looks perfect.
Let’s study the candle C.
Shooting Star at the end of a descending triangle
It gives a direction that the triangle can break downside.
- It is also a Compression Pattern.
- Also many call descending triangle a Bearish Pennant.