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Shooting Star Candlestick

A shooting star is a bearish candlestick that has a small body, a long upper shadow, and little or no lower shadow. The shooting star is basically an inverted hammer (or a gravestone doji) that appears at the top of an uptrend. The formation of this pattern is the result of zealous buying. Prior to the shooting star formation, price is basically in a momentum run pushed upward by bullish energy. On the day of the shooting star formation, price rises significantly higher, fueled by exuberant buying and reaching overbought conditions. At that point price starts to pullback and closes the day near or below the opening price. Generally that marks the end of the uptrend and the beginning of a correction or downtrend.

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