The Shooting Star candlestick pattern is similar to the Evening Star candlestick pattern in that it is a bearish top reversal pattern that may appear in an uptrend and warns of a possible trend reversal. Where the Shooting Star differs from the Evening Star is in the shape of the star, which, in the case of the Shooting Star, has a long upper shadow and no or very little lower shadow, much like a "Shooting Star" racing across the sky. Thus, the star in the Shooting Star pattern takes the form of an Inverted Hammer rather than a small Doji or a Spinning Top as in the Evening Star.
As with the Evening Star, the Shooting Star pattern consists of three candlesticks, with the middle candlestick being the star. The first candlestick must be white or light in color and must have a relatively large real body. The second candlestick is the star with a short real body that gaps away from the real body of the previous candlestick. In other words, the real body of the Shooting Star may form within the upper shadow but not within the real body of the candlestick that precedes it. The star implies a weakness in the uptrend as the price rallied and then decline to close closer to the open price. However, the ascending gap between the first candlestick and the star also has a bullish implication. Thus, the third candlestick in the formation must confirm the pattern and must be a black candlestick that closes well into the body of the first candlestick.
As with the Evening Star, the reliability of the Shooting Star candlestick pattern is enhanced when the real body of the third candlestick gaps away from the real body of the star. The reliability of the pattern is also enhanced by the extent to which the real body of the third candlestick penetrates the real body of the first candlestick, and if the volume on the first candlestick is lower and the volume on the third candlestick is higher.