Shooting Star: A Good Indicator of a Bearish Reversal in One Candlestick
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“Shooting star.” This chart formation has a fancy name, but it’s not at all complex. In fact, it is a single-candlestick formation. Best of all, it is an incredibly reliable predictor of a bearish reversal.
Shooting stars are pretty easy to spot — if you know what you’re looking for. There are a bunch of criteria you have to check to make sure what LOOKS like a shooting star REALLY IS a shooting star. All of these signs are discussed in this week’s episode!
In this episode, you’ll learn:
- How to identify a shooting star (0:42)
- How “chartologists” interpret shooting stars (1:44)
- How to differentiate between a shooting star and the infamous “gravestone doji” (2:13)
- How to properly understand the context in which a shooting star takes place (2:14)
The video also includes several in-depth examples of shooting stars, gravestone dojis, and even a third single-candlestick formation: the dragonfly doji!
In conclusion, shooting stars, gravestone dojis, and dragonfly dojis are all closely related. In order to differentiate between and interpret them, you need to understand context. With the information included in this video, you’ll have no problem doing so!
Happy Trading!
Manny Backus
CEO, Wealthpire Inc.
P.S. Next week we’ll look at the StochRSI oscillator. It may sound a bit complicated, but it’s easy to learn and a great asset to have in your bag of tricks!
Episode 53 – Shooting Star: A Good Indicator of a Bearish Reversal in One Candlestick
