6.11 Star

Star is a 3-day pattern. The day 2 features doji while day 1 and day 3 features a large candle.

6.11.1 Morning star

Bullish signal:

  1. Large bearish candle on day 1
  2. Small candle (or doji) on day 2
  3. Large bullish candle on day 3
  4. Gap down between day 1 and day 2
  5. Gap up between day 2 and day 3

Here is an exmample:

price <- MSFT['2013-06-09/2013-06-18']
candleChart(price, theme='white')

6.11.2 Evening Star

Bearish Signal:

  1. Large bullish candle on day 1
  2. Small candle (or doji) on day 2
  3. Large bearish candle on day 3
  4. Gap up between day 1 and day 2
  5. Gap down between day 2 and day 3

Here is an exmample:

price <- MSFT['2011-11-01/2011-11-11']
candleChart(price, theme='white')