Shooting Star — Bearish Reversal at Resistance

Shooting Star is the bearish mirror of the Hammer — long upper wick, small body at the bottom. At XAUUSD resistance, it’s one of the highest-probability short signals.

📚 What is the Shooting Star?

Shooting Star has a small body at the lower end and long upper wick.

Upper wick at LEAST 2x the body size.

Little to no lower wick.

Forms at top of uptrend or major resistance.

🔍 How to Identify

• Small body at lower portion of candle.
• Long upper wick = 2x+ body size.
• Minimal lower wick.
• Location — top of uptrend or major resistance.
• Confirmation in next candle (bearish).

🧠 Market Psychology

Buyers push price up aggressively — but sellers overwhelm them by close. Long upper wick = supply zone defended. Close near open = control flipped bearish.

💼 Trading Rules

🥇 XAUUSD-Specific Notes

• At XAUUSD supply zones = very high probability short.
• H4 / Daily most reliable.
• Combine with bearish RSI divergence.
• Volume = institutional defense of the level.

✅ Confluence Checklist

Use these criteria to validate the setup before entry. The more boxes checked, the higher the probability:

• At HTF resistance / supply zone.
• Bearish RSI divergence.
• Above-average volume.
• Bearish confirmation candle.
• DXY strength.

⚠️ Common Mistakes to Avoid

🎯 The Bottom Line

Shooting Star at XAUUSD H4/Daily supply zone with confirmation candle = institutional-quality reversal short.

Part of the Best Trade Logic Pattern Library · 27 essential patterns for XAUUSD & forex traders