Falling Star: a powerful market reversal tool 🚀

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The "Shooting Star" pattern is one of those candlestick signals that really works for identifying the end of an uptrend. In 2025, it is still good. In the stock market, its effectiveness seems impressive — about 65% with a risk/reward ratio of 3:1. Not bad! 🔥

How to recognize it?

It's not difficult to recognize the pattern:

  • Small body at the bottom
  • Long upper shadow
  • There is almost no lower shadow

The bulls initially pushed the price up. But then the bears overcame them. The price went down by the close. A typical sign of a weakening trend. 📉

Looking at the context

The falling star works better under certain conditions.

A long upward trend in front of her? The chances of a reversal are growing. A large trading volume is also important. And what if the pattern occurs at a strong resistance level? This is pure gold.

How to Trade in 2025

TradingView and Finviz will help find this pattern. I think the trading scheme here is quite simple:

  1. Waiting for confirmation
  2. Stop above the star's maximum
  3. Profit at the nearest support

It's funny that the pattern works more reliably in the stock market. With crypto, everything seems a bit murkier. It depends on the timeframe. 🌕

Combining with Other Signals

Is the RSI off the charts? Is the MACD showing divergence? Add a Shooting Star here. It will turn out delicious. The accuracy of signals seems to significantly increase. ✨

The Falling Star is not just a beautiful name. It is a real tool, tested over the years. With it, your trading in 2025 can become significantly more successful.

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