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Post of the Day: Evening Star
Friday, 10 July 2009 04:03:21 GMT
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Previous Articles
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- Tuesday, 06 October 2009 08:57:14 GMT The Trend of the Day - GBP/USD
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- Friday, 11 September 2009 10:13:14 GMT Trend of the Day - GBP/USD
- Friday, 11 September 2009 10:13:14 GMT Post of the Day: Identifying an Entry
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- Wednesday, 02 September 2009 08:44:39 GMT Post of the Day: Controling Greed
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- Wednesday, 26 August 2009 11:45:00 GMT Trend of the Day - EUR/GBP
- Wednesday, 26 August 2009 04:36:38 GMT Post of the Day: Wicked Candles
- Tuesday, 25 August 2009 04:07:15 GMT Post of the Day: Candlestick Identification
Student’s Question:
Can candlestick patterns be used as conformational indicators?
Power Course Instructor’s Response:
Sure…
Take a look at the chart below…
We see a very well established trendline in place for about 4 months. A break of trendline support occurs when the bearish candle closes below the trendline. That in itself is significant. However, the pattern of which that candle is a part is an Evening Star. Since an Evening Star is a bearish signal, this would lend even more significance to the break of support.
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