Candlestick Stars

Candlestick Stars consist of a two candle formation representing a period of indecision. There are several variations of the Candlestick Stars pattern,  including the Evening Star, Morning Star and Shooting Star.

Candlestick Stars

Candlestick Stars occurring on a stock chart consist of a two candle formation representing a period of indecision. There are several variations of the Candlestick Stars pattern,  including the Evening Star, Morning Star and Shooting Star.


Candlestick Stars Identification

Candlestick Stars have small real bodies which gap away from a large real body that precedes it.  The Candlestick Star's real body does not overlap the previous candles real body.  

When the second candlestick is a Doji instead of a small body then the candlestick patterns are referred to as Evening Doji Star, Morning Doji Star and Gravestone Doji.

Candlestick Stars pattern

Candlestick Stars Interpretation

As a Candlestick Star has a small real body, it represents indecision by both the bulls and the bears. While the larger trend may be strongly up or strongly down, the presence of the Candlestick Star indicates that the prevailing direction may have come under profit taking or that the other side has actually taken control. Remember, the previous bar should be a strong bar in the direction of the trend which indicates that the bulls (in an up trending market) or the bears (in a down trending market) are in control. This strength in direction is what makes the appearance of the star that much more important as the conviction has dissipated.

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