Pine Script: Shooting Star Candlestick Pattern

Why the Shooting Star Pattern Matters in Pine Script

The Shooting Star candlestick pattern is a single-candle bearish reversal pattern that typically forms after an uptrend. It signals a potential top and a shift in momentum from buyers to sellers. The Shooting Star's unique shape indicates that despite initial buying pressure during the trading period, prices could not be sustained at their highs, and sellers pushed them back down, often near the opening price. This shows that the market struggles to maintain higher prices, making Shooting Star patterns invaluable for:

• Identifying potential bearish trend reversals.
• Signaling a rejection of higher prices (resistance).
• Generating entry signals in short strategies.

Understanding the Shooting Star Candlestick Pattern

A Shooting Star candle has a small real body (the difference between open and close) and a long upper shadow (wick) that is typically at least twice the length of the real body. It has little or no lower shadow. The color of the body (bullish or bearish) is less important than its shape and location after an uptrend.

Basic Shooting Star Pattern Detection in Pine Script

Here's how to create a basic indicator to detect Shooting Star patterns in Pine Script v5:

//@version=5
indicator("Shooting Star Pattern Detector", overlay=true)

// Calculate candle body and wick lengths
realBody = math.abs(close - open)
upperShadow = high - math.max(open, close) // Corrected calculation for upper shadow length
lowerShadow = math.min(open, close) - low

// Define Shooting Star criteria
// 1. Small real body
isSmallBody = realBody <= (high - low) * 0.3 // Body is at most 30% of total candle range

// 2. Long upper shadow (at least 2x the body size)
isLongUpperShadow = upperShadow >= realBody * 2

// 3. Little to no lower shadow (lower shadow is at most 50% of body)
isSmallLowerShadow = lowerShadow <= realBody * 0.5 
// Alternative for lower shadow: lowerShadow < (high - low) * 0.1

// Combine criteria for Shooting Star
isShootingStar = isSmallBody and isLongUpperShadow and isSmallLowerShadow

// Plot signal on the chart (above the bar for bearish reversal)
plotshape(isShootingStar, title="Shooting Star", location=location.abovebar, color=color.new(color.blue, 0), style=shape.triangledown, size=size.normal)

// Alert condition (optional)
alertcondition(isShootingStar, title="Shooting Star Detected", message="Shooting Star Candlestick Pattern Detected!")

Advanced Shooting Star Strategies

While basic detection is useful, combining Shooting Star patterns with other indicators and market context provides stronger, more reliable signals for potential reversals.

1. Shooting Star with Uptrend Confirmation (Using Moving Average)

//@version=5
strategy("Shooting Star with Trend Confirmation", overlay=true)

// Input for Moving Average length
maLength = input(50, "MA Length (for trend)")
ma = ta.ema(close, maLength) // Using EMA for uptrend detection

// Shooting Star Pattern Detection (from basic example)
realBody = math.abs(close - open)
upperShadow = high - math.max(open, close)
lowerShadow = math.min(open, close) - low 

isSmallBody = realBody <= (high - low) * 0.3
isLongUpperShadow = upperShadow >= realBody * 2
isSmallLowerShadow = lowerShadow <= realBody * 0.5

isShootingStar = isSmallBody and isLongUpperShadow and isSmallLowerShadow

// Trend Confirmation: Price should be above the MA (uptrend)
// AND the MA itself should be sloping upwards (optional, but stronger)
isUptrend = close > ma and ma > ma[1] 

// Strategy Logic with Trend Confirmation
shortSignal = isShootingStar and isUptrend

if (shortSignal)
    strategy.entry("Short", strategy.short)
    
// Plot MA
plot(ma, "Trend MA", color.blue)

// Plot confirmed signals
plotshape(shortSignal, title="Confirmed Shooting Star", location=location.abovebar, color=color.new(color.fuchsia, 0), style=shape.arrowdown, size=size.normal)

2. Shooting Star with Volume Confirmation

//@version=5
indicator("Shooting Star with Volume Confirmation", overlay=true)

// Shooting Star Pattern Detection (from basic example)
realBody = math.abs(close - open)
upperShadow = high - math.max(open, close)
lowerShadow = math.min(open, close) - low 

isSmallBody = realBody <= (high - low) * 0.3
isLongUpperShadow = upperShadow >= realBody * 2
isSmallLowerShadow = lowerShadow <= realBody * 0.5

isShootingStar = isSmallBody and isLongUpperShadow and isSmallLowerShadow

// Volume Confirmation:
// Shooting Star candle's volume should be significantly higher than average volume
avgVolume = ta.sma(volume, 20) // 20-period Simple Moving Average of Volume
isVolumeConfirmed = volume > avgVolume * 1.5 // Volume is 1.5x average

// Combined signal
confirmedShootingStar = isShootingStar and isVolumeConfirmed

// Plot confirmed signals
barcolor(confirmedShootingStar ? color.new(color.purple, 60) : na)

plotshape(confirmedShootingStar, title="Shooting Star (Vol Confirmed)", location=location.abovebar, color=color.new(color.red, 0), style=shape.labeldown, size=size.small, text="SS Vol")

// Optional: Plot volume for visual check
plot(volume, title="Volume", color=color.gray, style=plot.style_columns)
plot(avgVolume, title="Avg Volume", color=color.orange, style=plot.style_line)

3. Shooting Star with RSI Confirmation

//@version=5
indicator("Shooting Star with RSI Confirmation", overlay=true)

// RSI Inputs
rsiLength = input(14, "RSI Length")
overbought = input(70, "RSI Overbought Level")

// Calculate RSI
rsiValue = ta.rsi(close, rsiLength)

// Shooting Star Pattern Detection
realBody = math.abs(close - open)
upperShadow = high - math.max(open, close)
lowerShadow = math.min(open, close) - low 

isSmallBody = realBody <= (high - low) * 0.3
isLongUpperShadow = upperShadow >= realBody * 2
isSmallLowerShadow = lowerShadow <= realBody * 0.5

isShootingStar = isSmallBody and isLongUpperShadow and isSmallLowerShadow

// RSI Confirmation: RSI should be in overbought territory or falling from it
rsiConfirmation = rsiValue >= overbought or (rsiValue[1] >= overbought and rsiValue < rsiValue[1])

// Combined signal
signalShootingStar = isShootingStar and rsiConfirmation

// Plot signals
plotshape(signalShootingStar, title="Shooting Star (RSI Confirmed)", location=location.abovebar, color=color.new(color.orange, 0), style=shape.arrowdown, size=size.normal)

// Plot RSI in a separate pane
plot(rsiValue, "RSI", color.blue, linewidth=2, display=display.pane)
hline(overbought, "Overbought", color.red)

Optimizing Shooting Star Pattern Performance

To maximize the effectiveness of Shooting Star patterns in your Pine Script strategies:

• Confirm Uptrend: The Shooting Star is a bearish reversal pattern, so it's most reliable when it appears after a clear uptrend. Avoid trading it in a downtrend or sideways market.
• Volume Confirmation: A Shooting Star candle formed with higher than average volume indicates stronger conviction from sellers and increases the reliability of the signal.
• Resistance Levels: Shooting Stars that form at significant resistance levels (e.g., previous highs, strong moving averages, Fibonacci levels) are more powerful.
• Subsequent Candle Confirmation: A strong bearish candle after the Shooting Star further confirms the reversal. Some traders wait for this confirmation before entering a short position.
• Timeframe: While visible on all timeframes, Shooting Star signals on higher timeframes (e.g., daily, weekly) generally carry more weight and are more reliable for sustained moves than those on lower timeframes.

Common Shooting Star Pattern Pitfalls to Avoid

• Ignoring Trend Context: A Shooting Star pattern is a *bearish reversal* signal. If it appears in a downtrend, it is NOT a Shooting Star and is actually an Inverted Hammer, indicating potential bullishness.
• Insufficient Upper Shadow: An upper shadow that is not at least twice the real body's length might not indicate strong enough rejection of higher prices.
• Large Real Body: If the real body is too large, it suggests less indecision and less of a "top-out" scenario.
• Lack of Confirmation: Relying solely on the Shooting Star pattern without other indicators (volume, resistance, follow-through candles) can lead to false signals.
• Trading in Choppy Markets: In ranging or sideways markets, Shooting Star patterns are less reliable as there's no clear trend to reverse.

Conclusion

The Shooting Star candlestick pattern is a strong and visually intuitive signal for bearish reversals. By understanding its precise characteristics and, more importantly, its contextual significance within an uptrend, you can leverage it effectively in your trading. Implementing Shooting Star detection in Pine Script allows you to automate signal generation, combine it with other technical indicators for higher probability trades, and refine your price action analysis to make more informed trading decisions on TradingView.