What Is a Worked Example of Shooting Star?

Worked definition: what is a Shooting Star

A Shooting Star is a single-candlestick pattern defined mainly by shape. In plain terms, it shows that price moved up during the candle but closed back near where it started (or closer to the low), leaving a long upper wick.

A common way to express the definition numerically is:

• The candle has a small real body (the open-to-close distance is relatively short).
• The candle has a long upper wick (the distance from the top of the body to the candle high is relatively large).
• The close is near the low (and often near the open), meaning sellers regained control by the end of the period.

Because different charting tools can define “small” and “long” with slightly different thresholds, any worked example must state the exact assumptions used to classify the candle.

How does a worked example work

A worked example means you choose assumed prices for one candle, then compute the measurements that determine whether the candle fits the definition. No live market data is required.

Example setup (assumptions stated)

Assume a one-candle “time period” with these values:

• Open = 1.2000
• High = 1.2060
• Low = 1.1980
• Close = 1.2004

Assume a threshold-based rule for classification:

• “Small body” means body size ≤ 0.2% of the candle range.
• “Long upper wick” means the upper wick ≥ 2 × the body size.
• “Close near low” means (Close − Low) ≤ 10% of the candle range.

These rules are assumptions for the example; other traders or platforms may use other thresholds.

Step-by-step calculations

1. Candle range = High − Low = 1.2060 − 1.1980 = 0.0080

2. Body size = |Close − Open| = |1.2004 − 1.2000| = 0.0004

3. Upper wick size = High − max(Open, Close)

   • max(Open, Close) = 1.2004
   • Upper wick = 1.2060 − 1.2004 = 0.0056

4. Distance from close to low = Close − Low = 1.2004 − 1.1980 = 0.0024

Check against the assumed rules

• Small body condition: body size ≤ 0.2% of range
  • 0.2% of 0.0080 = 0.000016
  • 0.0004 ≤ 0.000016 is false.

So, with these particular thresholds, this candle would not be classified as a Shooting Star.

To show how classification can change with stated assumptions, adjust only the “small body” rule for the example:

• New assumption: “Small body” means body size ≤ 5% of candle range.

Now:

• 5% of 0.0080 = 0.0004

• body size 0.0004 ≤ 0.0004 is true.

• Long upper wick condition: upper wick ≥ 2 × body size

  • 2 × body size = 2 × 0.0004 = 0.0008
  • 0.0056 ≥ 0.0008 is true.

• Close near low condition: (Close − Low) ≤ 10% of range

  • 10% of range = 0.10 × 0.0080 = 0.0008
  • 0.0024 ≤ 0.0008 is false.

So, even with the revised “small body” threshold, the “close near low” rule fails. The candle is shaped like it has an extended upper wick, but it does not meet this example’s strict “close near low” criterion.

This demonstrates a core point: a “worked example” is not just numbers—it also includes explicit thresholds, and different thresholds can yield different classifications.

Evidence or example outputs: what you can independently verify

From the calculations above, anyone can verify:

• The upper wick length (0.0056) relative to the body (0.0004).
• The close-to-low distance (0.0024) relative to the total range (0.0080).
• Whether each threshold condition is satisfied.

If your threshold set changes, re-check the same arithmetic. The candle remains the same; only the rule changes.

Limitations and failure modes (material risks)

1. Pattern meaning depends on context. A candle’s shape alone does not prove why it formed or what will happen next.

2. Threshold disagreement. “Small body,” “long upper wick,” and “close near low” can vary between definitions, so classification can differ across platforms or chart styles.

3. Variable market effects. Even if a candle matches the geometry, subsequent price movement can be influenced by spread, costs, and execution quality, which are not captured in the candle’s shape.

4. Historical relationships do not guarantee future results. A prior association between the pattern and later movement does not establish a predictable outcome.

Verification or next question

To verify a Shooting Star claim independently, do three checks on the exact candle you are analyzing:

• Measure open, high, low, close.