SHOOTING STAR CANDLESTICK
When stocks open and significantly rise but than bears pull it back and it comes down to close near the opening price of the session, a Shooting star is formed in such condition.It is a Bearish pattern as the price tried to increase but the sellers took over and pushed it downwards. It is not advisable to completely rely only on a shooting star on the graph, you should also look for some other confirmationa signals to sell.
If you own a stock and in profit by selling at the time when shooting star appears, than you can proceed and sell the stock but if you re thinking of trading by doing short sell only on the basis of a shooting star, than it may not be a wise step.In this case , consider some other technical indicators also.
Shoooting star potentially indicate the price top and it is much effective when it forms after a series of three or more consecutive rising candles (bullish candles) as chances of fell increase when market is at peak as at that time sellers may be wanting to sell the stocks.
But ideal conditions are rare to be found.
One thing you have to remember is that shooting star must gap up open from the previous candle.