Second star to the right and straight on till morning! Well, not quite, Peter Pan. Those directions will take you to Neverland, but if you’re looking for a Shooting Star candlestick pattern, you’ll need better directions. This bearish reversal signal, which looks uncannily like the Inverted Hammer, is found at the end of an uptrend and heralds a falling price. It is formed by a single candle with a short body, little or no lower shadow, and a very long upper shadow. If you’re wondering exactly what a Shooting Star candlestick pattern looks like or what it might mean for future prices, scroll down. Everything you need to know is below . . .
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Today’s Swing Trade Ideas
CRNT/Long (Technology Sector Communication Equipment) CRNT has formed a Pinball formation with the first target about $1.29 and the second about $1.55. The Pinball formation is a terrific chart pattern to understand. Many times I refer to it as my ATM machine. CRNT is now starting to form the left side and center of the bottom with a double bottom and a close over the T-Line, and in this case, a close over the 20-day simple moving average as well. I’ll talk about the intraday charts in the trading this morning at 9:10 AM Eastern.
- There are a few inverse ETFs on the members’ watchlist that we will also be following very closely today. Any one of them could have easily been the featured trade idea.
My entry plan idea: Ideally an inside day above $1.05 and below $1.13, but I will also look to buy on positive trading above yesterday’s high. Be careful not to chase.
My stop plan idea: Pinball rules – a close below the T-Line
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Saturday Rounded Bottom Breakout Seminar/Clinic
When: Saturday December 13, 2014
Time: 11:00 AM Eastern
Where: Online in the Trading Room
For more information: Click Here
Good Morning,
SPY: A candlestick signal doesn’t mean much without confirmation follow-through. Tuesday the SPY posted a bullish belthold that failed to produce a bullish confirmation or follow-through. The lower close Continue Reading
