Shooting Star Candlestick Pattern Definition: When the price highly increases during a day, but decreases to what it was at the beginning of the day or even lower, a considerable bearish retracement is occurred. The candlestick of this price action in the daily time frame is a Shooting Star.
The Shooting Star in the daily time frame is a very strong signal for the possibility of more decrease in price during next days.
Example: The chart shows the price of Gold in the time frame of 30 minutes. On Sep 08, 2017 the price significantly increased from 1348.80 to 1357.53, then it decreased more, and at the end of the day to it was closed at 1346.07. The corresponding Shooting Star candlestick of this price movement in the daily time frame is also drawn on the chart to better describe the concept.
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Price Action Lesson 7: Conditions of a Perfect Shooting Star