the color of the stars

Discussion in 'Technical Analysis' started by cashmoney69, Apr 9, 2006.

  1. Why does the color of star candles not matter?...

    for example, a morning star should not be black sense it is a bullish formation

    - nate
  2. Post a chart example because via your explanation...your misinterpreting the pattern or your talking about something else.

    However, I'm going to guess that your reference to the black (Open > Close) is the middle small line of the 3 candlestick pattern that can also be (Close > Open).

    If's a pattern where all three candlestick lines have a relationship and the bullish aspect is not based upon one single candlestick line.

    Instead, its based upon the price action of all 3 candlestick lines.

    I myself don't like the generic morning star pattern you see in the link above (not reliable).

    I prefer the more complex morning star patterns.

    (a.k.a. NihabaAshi) Japanese Candlestick pattern
  3. Pretend the little star isn't there and you will understand what are the two most important candlestick lines in that pattern.

    This may help you to see not to put too much emphasis on that little star regardless if its white or black.

    Further, if you know a little about candlestick will see that the 3 candlestick pattern Morning Star will produce a Dark Hammer Line with a long lower shadow when the 3 candlestick lines are blended into 1 candlestick line.

    Long lower shadows are key candlestick support/resistance zones and represent changes in supply/demand.

    (a.k.a. NihabaAshi) Japanese Candlestick term
  4. the shadows in the link i gave you dont have long shadows...unless your talking about a long legged doji..but those are not the same as stars.

    maybe you can give me a link of a better example for a morning star pattern.

    - nate
  5. You need to blend (combine) your 3 candlestick lines involving the Morning Star to convert them into a 1 candlestick line.

    Simply, the merging of the Morning Star 3 candlestick lines gets reduced to a Dark Hammer Line that has a long lower shadow.

    There's a section at the below link that talks about basic candlestick blending although their examples do not involve a Morning Star pattern.

    Further, the candlestick blending shows that the small line (dark or white) is unimportant and is the reason why I said the emphasis in the pattern is the candlestick line that occurs before and after the small line.

    (a.k.a. NihabaAshi) Japanese Candlestick term