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Technical Analysis Candlestick Patterns Chart

Position of the Star A candlestick in star position is one that gaps away from the preceding candlestick. Generally, but not always, the first candlestick has a big actual body, whereas the second candlestick in star position has a tiny real body. The star position candlestick gaps up or down, depending on the preceding candlestick, and seems separated from past price activity. Two candlesticks in any combination of white and black are acceptable. Doji, hammers, shooting stars, and spinning tops all have little actual bodies and may take the shape of stars. Additionally, various two- and three-candlestick designs employ the star position.

The shooting star is constructed with a candlestick with a long upper wick, a short or non-existent lower wick, and a little body, preferably near the low. The shooting star is similar to the inverted hammer in shape but occurs towards the conclusion of an upswing. It shows that the market achieved a high, but then sellers regained control and pushed the price down. Certain traders prefer to wait for confirmation of the pattern to develop over the following few candlesticks.

1 1⁄4 Following the sellers' preponderance at 10:25, we can notice a drying up of sells in the low doji around 10:30, but the delta remains positive.

2 รข The buyers' preponderance is at the peak volume level of 10:35, and the delta is positive. However, the volume is lower than in the prior bars during which sellers were active. It is advisable to wait for the next candle to get a clear image.

Individual candlesticks may provide a wealth of information about market emotion. Candlestick patterns such as the hammer, shooting star, and hanging man provide insight into shifting momentum and the possible direction of market values. As seen in the figure below, the Hammer candlestick pattern may sometimes signal a trend reversal. A hammer candle is characterized by a long bottom wick and a short body. Its closing price is more than the beginning price. The hammer formation's logic is straightforward: the price attempted to decrease, but buyers joined the market, driving the price upward. This is a positive indication to join the market, tighten stop-loss orders, or liquidate a short position.

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