Star

The star occurs when a stick gaps away from another. It is a sign that a stock is about to go up or down by a very substantial amount.

1. A candlestick goes from 25 to 28.
2. The second goes down from 28 to 27.8. This is the star in the chart.
3. The third stick moves down further from 27.8 to 24.
4. A fourth stick could be another star that moves from 24 to 24.1.

When a star appears to go down after the value moves up, there is a good chance the stock will move down. It could also be a false signal and the stock will continue to go up in value. The best strategy for a star position is to wait to see what happens after a star appears. You can wait for one or two more candlesticks to appear after the star to decide if the stock is ready to move in a certain direction. The singular star could go in either direction, but one thing is for certain - the value is going to change by quite a bit when it appears.