Shooting Star
BearishReversalBeginnerBuyers shoot price up, sellers drag it all the way back. One candle.
Verdict: CautionBitcoin 4H: 78 trades, won 53%, avg trade +0.1% vs random day −0.2%. Backtest
Price is climbing. Buyers are in charge, and every dip gets bought.
step 1/6
Trade rules
| Direction | Short (sell) |
|---|---|
| Entry | After an advance, a candle CLOSES below the shooting star's low within 3 candles. |
| Cancelled if | Price trades above the shooting star's high before that close. |
| Target | 2x the star, projected from the breakout |
3 common mistakes
- Shorting the star itself instead of waiting for the close below its low.
- Calling any long upper wick a star: it has to come after a rise, at a fresh high.
- Putting the stop under the wick tip instead of above it, so normal noise takes you out.
Backtest
same rules every time · equal size · no fees · method| Market | Trades | Won | Avg trade | Random day |
|---|---|---|---|---|
| Bitcoin · 4H · 2017-2026 | 78 | 53% | +0.15% | −0.20% |
| US large caps (50) · 1D · 2016-2026 | 442 | 46% | −0.37% | −0.43% |
Verdict: CautionBeat a random entry in some markets, not in others.
pattern +11%random −16%
pattern −165%random −191%