“INDICATOR OF THE DAY” - SHOOTING STAR CANDLE FORMATION
Gbp/Usd: A “shooting star” is a candle formation that occurs at the end of trend and often results in some form of a top. For this set-up to occur, the market will trade significantly higher right from the open, before eventually retreating to close all the way back by opening levels. From a price action perspective, this translates into a market that wanted to continue in the direction of the trend but in the end, could not succeed in its attempts. The picture above is a snapshot of the daily GBP/USD chart, which illustrates the bearish candle formation on Wednesday and suggests that the market could be looking to roll over.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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