【candlestick classroom】 Bearish Shooting Star, etc

wsjboy

Bearish Shooting Star



This pattern signals a trend...        
Reversal
       
How to identify...       
   1. Price gap open to the upside.
   2. Small real body formed near the bottom of the price range.
   3. The upper shadow at least three times as long as the body.
   4. The lower shadow is small or nonexistent.

Similar pattern(s)...
      Gravestone Doji

Psychology...
The long upper shadow and small real body at the bottom of the trading range are cause for concern by the bulls. They wonder if this is the end of the uptrend and take measures to protect their gains.

wsjboy

老蛇's chart in today's report:

wsjboy

Bearish Hanging Man



This pattern signals a trend...        
Reversal
       
How to identify...
   1. Small real body at the upper trading range.
   2. Color of the body is not important.
   3. Long lower shadow at least twice the length of the body.
   4. Little or no upper shadow.
   5. Previous trend should be bullish.
       
Similar pattern(s)...
      Bearish Hanging Man is a special case of the Dragonfly Doji.

Psychology...
As with any single candlestick, confirmation is required. The Hanging Man formation shows the price goes much lower than the open then closes near the opening price. This could mean that many longs have positions that they are attempting to sell. Ideally, a black real body Hanging Man with a lower open the following day could be a bearish signal for the days ahead.

wsjboy

another ongoing example similar to cobra's

xz214