The shooting star candlestick pattern is a bearish reversal formation identified on price charts, signaling a potential shift in market sentiment. It typically occurs after an uptrend and consists of a single candlestick with a small real body at the bottom and a long upper shadow. The long upper shadow represents a failed attempt by buyers to sustain upward momentum, leading to a sharp reversal in the opposite direction. The small real body, often near the low of the session, reflects the initial strength of buyers being overshadowed by selling pressure.

To identify a shooting star pattern, traders look for a candlestick with a small body, a long upper shadow at least two times the length of the body, and little to no lower shadow. This distinctive shape indicates a struggle between buyers and sellers, ultimately favoring the latter and suggesting a potential trend reversal. Traders often use this pattern in conjunction with other technical analysis tools to make informed trading decisions.