Considerations for Maximum Reliability Read blog - https://navia.co.in/blog/the-price-rejection-alert-understanding-the-psychology-of-the-shooting-star/
Why Reliability Matters ●
The shooting star candlestick is a strong bearish reversal signal, but it is not foolproof.
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Market conditions can sometimes absorb single-candle signals.
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Reliability improves when the pattern appears in the right context.
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Following a checklist helps avoid false or premature trades.
Read blog - https://navia.co.in/blog/the-price-rejection-alert-understanding-the-psychology-of-the-shooting-star/
Volume & Location Confirmation ●
High trading volume during or after the shooting star adds credibility.
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Strong volume suggests institutional selling, not just retail noise.
The pattern becomes far more reliable when it forms at: ●
A major resistance zone
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A well-respected Fibonacci level
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Random shooting stars without context should be treated cautiously.
Read blog - https://navia.co.in/blog/the-price-rejection-alert-understanding-the-psychology-of-the-shooting-star/
Indicator-Based Confirmation ●
Always look for confluence with other technical indicators.
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An overbought RSI reading strengthens the bearish case.
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A bearish MACD crossover adds further confirmation of momentum loss.
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Multiple signals aligning together increase trade confidence.
Read blog - https://navia.co.in/blog/the-price-rejection-alert-understanding-the-psychology-of-the-shooting-star/
Risk Management Is Non-Negotiable ●
Always place and respect your stop-loss.
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Uptrends can remain strong even after a reversal candle appears.
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A single shooting star can fail if broader momentum stays bullish.
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Discipline in risk management protects capital when signals don’t play out.
Read blog - https://navia.co.in/blog/the-price-rejection-alert-understanding-the-psychology-of-the-shooting-star/
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Read blog - https://navia.co.in/blog/the-price-rejection-alert-understanding-the-psychology-of-the-shooting-star/
