[walterw]

Originally Posted by notouch »

Here's what the Candlestick Man himself (Nison) says about shooting stars:



So it was a shooting star (but I agree not an ideal one, especially as it wasn't above the previous candlesticks) and we had a little bit of weakness in the morning but it just turned into another buy the dips scenario. The strong close puts the bulls back in charge.

I dont think Nison is the last resource on candlesticks... but the name of this candle varies from shooting star to inverted hammer depending where its situated in comparison to previous bar... classical candle books teach this... the reversal "power" of a shooting star happens really when she is alone on the top...

[notouch]

I agree with you there walterw. I'm going to do some more research into candlesticks because unlike intraday trading where candlestick patterns are never perfect, on the daily charts candlestick patterns often are perfect. The last big correction was preceeded by the classic three mountain top pattern and the three black crows candlesticks. If this rally ends in a shooting star it will probably be a gap up to new highs then a massive rally to new highs then a decline back to the open.