ShootingStar

Description

The Shooting Star pattern is a top reversal pattern, so bullish trend confirmation is important. The Shooting Star is characterized by a long upper shadow and a small real body near the bottom of the range. The color of the real body is unimportant.

Ideally, a Shooting Star gaps up from the previous bar, though the presence of this gap is not required.

Formula

ShootingStar(INPUT, Stringency=7, LRRange=10, LRType=3, LowerShadowPercentage=20)=begin

  retval = NONUM

  targetBar = 0

  cOpen = GetPrice($1, BATE_OPEN, targetBar, 0)

  pClose = GetPrice($1, BATE_CLOSE, targetBar + 1, 0)

  pOpen = GetPrice($1, BATE_OPEN, targetBar + 1, 0)

  pHigh = GetPrice($1, BATE_HIGH, targetBar + 1, 0)

  lShadow = LowerShadow($1, targetBar)

  if RealBodyHigh($1, targetBar) < BodyMidPoint($1, targetBar) then begin

    if UpperShadowLen($1, targetBar) >= (2 * RealBodyLen($1, targetBar)) then begin

      if Stringency >= 7 then retval = '7'|clr_red|above|vertical|arrow|ftiny

      if cOpen >= RealBodyHigh($1, (targetBar + 1)) then begin

        if Stringency >= 6 then retval = '6'|clr_red|above|vertical|arrow|ftiny

        if lShadow <= LowerShadowPercentage then begin

          if Stringency >= 5 then retval = '5'|clr_red|above|vertical|arrow|ftiny

          if NewHigh($1, targetBar) then begin

            if Stringency >= 4 then retval = '4'|clr_red|above|vertical|arrow|ftiny

            if Bullish($1, targetBar, LRRange, LRType) == TRUE then begin

              if Stringency >= 3 then retval = '3'|clr_red|above|vertical|arrow|ftiny

              if lShadow == 0 then begin

                if Stringency >= 2 then retval = '2'|clr_red|above|vertical|arrow|ftiny

                if cOpen > pHigh then begin

                  retval = 'Shooting Star'|clr_black|above|vertical|arrow|ftiny

                end

              end

            end

          end

        end

      end

    end

  end

  retval

end

Parameters

INPUT

The INPUT directive makes this formula available as a Formula Overlay. INPUT refers to the instrument in the chart.

Stringency

The Stringency argument is used by nearly all candlestick overlays. It controls how many tests must pass in the evaluation of a Shooting Star. The lower the number, the more strict the interpretation.

The Stringency argument is an overlay parameter. You can adjust it using the Parameters dialog. The default is 7.

LRRange

The ShootingStar overlay uses the LR() function with either a continuous or quadratic calculation to determine how the market is trending. The LRRange (Linear Regression Range) parameter is the number of points in the Linear Regression calculation. The default is 10.

LRType

The LRType parameter has two possible settings: 2 and 3, or continuous linear regression and quadratic linear regression, respectively. The default is 3, or quadratic.

LowerShadowPercentage

The LowerShadowPercentage parameter represents a percentage. This parameter serves as the basis for determining how long a Shooting Star's lower shadow can be. The smaller the value the more stringent the test. The default is 20, or twenty percent.

Return Value

The return value is a string plot and varies depending on the value of the Stringency parameter.  The lower the number, the stronger the pattern.

Bearish indicators are rendered in red above the candlestick.

The string plot for a fully qualified Shooting Star is "Shooting Star" rendered in black above (bearish) or below (bullish) the candlestick.

Examples

Comments

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