Finding Romance in Candlestick Chart Patterns

You only need to know 15. You don't have to spendYour eye will spot it on the charts in an instant. In
late hours or drudge time to memorize all of thecandlestick analysis, the Shooting Star is considered
known candlestick chart patterns. You can learn theto be a bearish signal. If prices do in fact close lower
most important 15 in a hurry. It's not difficult at all.on the day after the Shooting Star appears, its
You will learn very quickly that you will recognizebearish connotation is amplified.
them on sight, and searching for them can become aThe same pattern (in reverse) can appear at the end
very interesting quest, and even a game, especially ifof a long downtrend, too; but in this case it's not a
more than one person is nearby.Shooting Star, it's a Hammer. It is given the name
It is important to remember that the most useful"Hammer" because it shows that the Bears tried to
aspect of the candlesticks is their ability to help youdrive prices down, but when all was said and done
unearth reversals of trend, as they are occurring orthey failed, and prices closed somewhere close to
as they are about to emerge. With that thought, youtheir opening, near the very top of the pattern. As
need only to focus on the top 15 or so - theyou might imagine, the connotation of the Hammer is
powerhouses which are most prevalent and whichvery bullish.
have the best record in terms of predictive accuracy.There is nothing mysterious, or time-consuming, or
My own personal favorite candlestick chart pattern isdifficult in learning the 15 or so key candlestick chart
the "Shooting Star," probably because it looks like apatterns. You will come to understand them quickly
shooting star: located up there in the sky above theand naturally. It's actually fun. Once you learn them,
surface of the world, heading down straight towardyou'll never forget; just as you could climb aboard a
us, with a bright bulb at the head of it and a long tailtwo-wheeler today and ride off on it, even though
following along. The Shooting Star can only occuryou may not have ridden a bike in years and years.
after a time (preferably a long time) of rising prices.