Discussion on Shooting Star


https://www.tradingview.com/x/WZGyiVQ0/

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.

download


https://www.tradingview.com/x/C22RKbwd/

Shooting Star after a Doji. This looks perfect.

Let’s study the candle C.


Shooting Star at the end of a descending triangle

https://www.tradingview.com/x/3UJVVb6P
It gives a direction that the triangle can break downside.

  • It is also a Compression Pattern.
  • Also many call descending triangle a Bearish Pennant.

Speaking of shooting star and finding a trade, let’s study a live example -

https://www.tradingview.com/x/8odOSsVu/

That is Thor’s hammer that is about to fall heavy. Its a textbook example of shooting star.


https://www.tradingview.com/x/7irILJUf/

In this case, this shooting star is after a gap. So gap theory kicks in if the trade triggers. Double PRZ. (Potential Reverse Zone)


https://www.tradingview.com/x/ia3fo2XI/

Also, it accords to 0.5/1.63 harmonic pattern


https://www.tradingview.com/x/nsNWqcqr/.

So, if the short triggers it will be a good short because of so much PRZs.

  • Shooting Star
  • Gap
  • Supply Zone/ Resistance
  • Harmonic Pattern

But again, only if it triggers.

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