SubscribeCandlestick Star Patterns
July 22nd, 2006 • Related • Filed Under
The next group of patterns is made up of three candlesticks that include “stars.†These patterns are very strong signs that a reversal is coming. These candlesticks must appear at the top or bottom of a trend. The star must gap away from the other two candlesticks surrounding it. If the star is a doji, we should consider this an even more powerful sign that a reversal is occurring. The other bodies surrounding the star should be long real bodies of opposing color. Note that a doji that does not exactly open and close on the same price is still a significant signal. A doji followed by other doji and may be trending in a sideways fashion are weak signals and should not be played.
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