The Shooting Star Candlestick Pattern

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 ### The Shooting Star Candlestick Pattern #### Description The Shooting Star is a bearish reversal candlestick pattern that typically appears at the top of an uptrend. It is characterized by a small real body near the lower end of the trading range, a long upper wick (shadow), and little or no lower wick. The long upper wick indicates that the market opened, rallied significantly, but then gave up most of the gains to close near the opening price. #### Characteristics - **Small Real Body**: Indicates minimal difference between the opening and closing prices. - **Long Upper Wick**: Reflects strong upward movement that was not sustained. - **Short or Absent Lower Wick**: Suggests limited lower price movement during the period. #### Significance The Shooting Star pattern signals that buyers initially drove prices higher, but sellers regained control, pushing prices back down. This shift in momentum from bullish to bearish suggests a potential reversal from an uptrend to a downtrend. ####
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How to trading on Fibonacci levels

Trading on Fibonacci levels

Trader level (Experienced)

Type of strategy (Trend)

Timeframe (60-300 m)

Assets to trade (Any)


The most effective trading tactic is trading on the main price movement — on the trend.

And the best moment to conclude a trade is the moment the price reverses along the trend after a lull, i.e., a flat. Or even short movement against the trend — price correction.

To determine when the price will reverse and follow the trend again, use the "Fibonacci Correction" tool, a unique technical analysis tool.

Step 1: Determining a trend with correction beginning

We observe the asset price movement, and wait until trend correction begins.
It usually looks something like this:

Trading on Fibonacci levels_en1.png

Step 2: Building Fibonacci levels

Select the Fibonacci Tool, type Extension.

We draw a Fibonacci grid on the quote chart: put the first point at the very beginning of the trend, the second at the very top.

Trading on Fibonacci levels_en2.png

We now have reference levels: 38.2%; 50%, and 61.8%.

The thing is that in most cases, correction ends somewhere between those levels, and the price starts to follow the trend again.

Trading on Fibonacci levels_en3.png

Knowing that, you can conclude successful trades.

Step 3: Using levels to conclude trades

Trade UP - on an uptrend when the price has already reversed up from the level 61.8% or 50%, and the price candle CLOSES ABOVE the 38.2% level

Trading on Fibonacci levels_en4.png

Trade DOWN - on a downtrend when the price has already reversed down from the level 61.8% or 50%, and the price candle CLOSES BELOW the 38.2% level

Trading on Fibonacci levels_en5.png

IMPORTANT!
Trades are concluded for a period of 3 to 12 candles, depending on the intensity of price movement and the time frame being analyzed.

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