Shooting Star / Gravestone Doji Bearish

 

Pattern: Reversal Trend: Bearish Reliability: Low/Moderate

 

How to Identify it

• Small real body at the upper 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.