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Candlestick Star Reversal Patterns


[FONT=Verdana, Arial, Helvetica, sans-serif]These candlestick formations consist of a small real body that gaps away from the real body preceding it. The real body of the star should not overlap the prior real body. The color of the star is not too important, and they can occur at either tops or bottoms. Stars are the equivalent of gaps on standard bar charts. [/FONT]
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kb_cstick_starbull.gif

kb_cstick_starbear.gif
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[FONT=Verdana, Arial, Helvetica, sans-serif]Stars make up part of four separate reversal patterns: [/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif]Morning Star [/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif]Evening Star [/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif]Doji Star [/FONT]
[FONT=Verdana, Arial, Helvetica, sans-serif]Shooting Star (Inverted Hammer) [/FONT]

  • [FONT=Verdana, Arial, Helvetica, sans-serif]Morning Star -- this is a bullish bottom reversal pattern. The formation is comprised of 3 candlesticks. The first candlestick is a tall black real body followed by the second, a small real body, which gaps (opens), lower (a star pattern). The third candlestick is a white real body that moves well into the first period's black real body. This is similar to an island pattern on standard bar charts. [/FONT]
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kb_cstick_morningstar.gif
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  • [FONT=Verdana, Arial, Helvetica, sans-serif]Evening Star -- a bearish top reversal pattern and counterpart to the Morning Star. Three candlesticks compose the evening star, the first being long and white. The second forms a star, followed by the third, which has a black real body that moves sharply into the first white candlestick. [/FONT]
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kb_cstick_eveningstar.gif
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  • [FONT=Verdana, Arial, Helvetica, sans-serif]Doji Stars -- When a doji gaps above a real body in an uptrend, or gaps under a real body in a falling market, that particular doji is called a doji star. Two popular doji stars are the evening star and the morning star. [/FONT]
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kb_cstick_dojistarup.gif

kb_cstick_dojistardown.gif
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  • [FONT=Verdana, Arial, Helvetica, sans-serif]Evening Doji Star -- a doji star in an uptrend followed by a long, black real body that closed well into the prior white real body. If the candlestick after the doji star is white and gapped higher, the bearishness of the doji is invalidated.[/FONT]

  • [FONT=Verdana, Arial, Helvetica, sans-serif]Morning Doji Star -- a doji star in a downtrend followed by a long, white real body that closes well into the prior black real body. If the candlestick after the doji star is black and gapped lower, the bullishness of the doji is invalidated.[/FONT]
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kb_cstick_dojistarmorning.gif
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  • [FONT=Verdana, Arial, Helvetica, sans-serif]Shooting Star -- a small real body near the lower end of the trading range, with a long upper shadow. The color of the body is not critical. Not usually considered a major reversal sign, only a warning. [/FONT]
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kb_cstick_shootingstar.gif
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  • [FONT=Verdana, Arial, Helvetica, sans-serif]Inverted Hammer -- not really a star, but does look like a shooting star. When occurring within a downtrend, may be a turning signal. Body color is not critical. [/FONT]
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kb_cstick_invertedhammer.gif
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