The shooting star (nagare boshi) candlestick pattern (view full size chart) is one of the double candlestick patterns (i.e. it consists of two individual candlesticks), and it is a bearish pattern.
The shooting star candlestick pattern consists of an upward candlestick (e.g. a green candlestick), followed by either an upward or a downward candlestick (e.g. either a green or red candlestick) that opens above the close of the previous candlestick, trades above the high of the previous candlestick, and then closes above the close of the previous candlestick (i.e. the open, close, and high are outside the previous candlestick). Note that the second candlestick can be either an upward or downward candlestick, so it is the interaction of the two candlesticks that is relevant.
Use In Trading
The shooting star candlestick pattern can occur in a number of different contexts (e.g. at the beginning of a trend, during a trend, at the end of a trend, etc.), but it is most relevant when it occurs during a significant upward trend. The shooting star is an indication of the end of an upward trend, and therefore can be used as both a trade entry and a trade exit pattern (i.e. an exit from a long trade, and an entry to a short trade).
