Shooting Star Reversal Rules for Short Trades in Gold

Summary

This strategy sells a shooting-star candle on a 15-minute XAUUSD chart when its upper wick is sufficiently large relative to the body, its lower wick remains small, the body meets a minimum size, and price is higher than it was several bars earlier. An optional time filter can restrict signals to a chosen server-time window. The system allows only one open trade at a time.

The stop is placed above the signal candle's high with a body-scaled buffer, and the profit target is a body-scaled distance below entry. The document reports a backtest covering February 2025 through April 2026 with a 73.1% win rate across 28 trades, but gives no fuller performance breakdown. That limited sample and the absence of broader risk or market-regime analysis make the stated result insufficient to establish robustness; costs and slippage are configured in the strategy.

Key ideas

• A short signal requires a large upper wick, a small lower wick, a minimum body size, and a recent uptrend.
• The trade enters at the close of the qualifying candle and uses body-scaled stop and target distances.
• An optional session filter and a one-position limit constrain trade execution.
• The stated backtest covers a limited period and trade count, without a detailed performance breakdown.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.