Unit 2 · Single-Candle Signals

The Shooting Star — rejection of the high

The rally that got slapped back.

What you see

Small body at the bottom, long upper wick — a rally that was fully rejected from above.

What it means

Supply overwhelmed demand at the highs. The bloom came off the rally intraday.

How it is traded

Enter below the star's low. Stop above the wick high. Target the base of the move.

What comes next

Selling usually resumes within 1-3 candles. The first lower low after the star is the confirmation that the rejection stuck.

How it fails

In a strong uptrend this is often just a pause — wait for the next candle to confirm lower before acting.

Quick check

A shooting star appears mid-uptrend with no level in sight. Best action?
  • Wait — a star means most at a level or the end of a move
  • Short with full size immediately
  • Ignore all stars forever
  • Buy the dip

In a strong uptrend a lone star is often just a pause. Location first, candle second.

Play the interactive version →

This lesson is part of the free learning path at /academy/ — progress, XP and boss games live there.

Educational content only — not financial advice.