Charts for Beginners Shooting Star

Stock Market Charts for Dummies - Shooting Star Candlestick Bearish Reversal Pattern

For the basics on how to trade stocks online - click here for the no frills lowdown ---> how to trade stocks online

Understanding stock market charts is important for stock trading or investing. It is not necessary to understand the meaning of every tiny move but a knowledge of the basics that professional investors use will help in interpreting what is happening to a stock price, and more importantly, what it might do next.

As explained in a previous post - see candlestick stock charts for beginners - Japanese candlesticks are commonly used as they provide a lot of information in an easyily understood graphic format.

The pattern known as the shooting star is one of the more important candlestick patterns. It has a small body (which can be either white, black, green or red depending on the trading software you use) and a long upper shadow with a very small or even non-existent lower shadow.

The upper shadow needs to be at least double the length of the body and the difference between the high point and and the low point should be significant. The low/high range needs to be wide compared to the range for the last 10 to 20 days.

A candlestick is called a shooting star if it gaps up from the previous day. This is not a hard-and-fast rule however, particularly in so far as concerns trading indices and stocks, as it is not unusual for these to open near the close of the previous day. If there is a gap up this indicates a stronger shooting star, but even if there is no gap up the reversal still holds true.

A bearish reversal must also be confirmed. A reversal means that there are less buyers than sellers for one or more days, but there is no guarantee that it will continue. Confirmation is needed. This confirmation is provided if there are further moves to the downside, such as a gap down, major decline in volume or a long black candlestick. Bearish confirmation should be clear within 1 to 3 days.
This video from gives a more detailed explanation

Further reading : Investing in Stocks for Beginners

For how to trade the shooting star video - shooting star candlestick

Stock Market Training Trading Courses

How to Trade Stocks Online - Internet Stock Market Trading Training Courses

Are stock market trading courses and seminars worth the money?

Well, if they're free then sure, why not! The Internet is full of free information about all aspects of the stock market. Some people even put up stock market trading videos on sites like youtube so it is clearly a good idea to take a look at them, particularly if you are a beginner to stock trading.

But what about the trading courses that are not free and that in fact are pretty expensive - usually costing several hundred to several thousand dollars ? The philosophy behind these stock investing courses and seminars seems to be that the more expensive they are the better they must be. Although from the sites I have looked at it is very difficult to see how much they actually cost before you give them your details, they seem to like to stress how much information they are including for free ! Personally I can't see how that can be the case.

Let me first add that I have never tried any of these stock market training courses so I can't judge on the merits or otherwise of any particular course. However, it seems to me pretty obvious (as is the case with all schemes and courses designed to make you lots of money once you have paid the sign-up fee) that if the people selling these courses had a sure fire way of making regular returns of 10%, 20% or 50% and more, then they wouldn't need to be selling stock market training courses to make a living.

It makes no sense to me to be putting a lot of effort into selling your 'secrets' or your 'system' or even just plain old charting information, when all you need to do is to apply your system to get rich. It is clear therefore that these stock trading courses are designed first and foremost to make money for the people selling them, not the people buying them.

The same is true of course for all such get rich schemes. It is apparently possible to make money online from blogs, but the vast majority of sites that I have seen that purport to tell you how it is done seem more interested in selling you their e-book first, which contains the 'secret' method you need to buy so that you too can join them in their online money making endeavours.

So are stock market trading courses worth the investment ? Well, I won't be taking up any offers. But take a look at some of the links I have put up to see if you are impressed by what is available. Once you have waded through the hype and promises of a bright future after you have parted with your cash, then go back to youtube and watch the free videos or use this site and get the information you need for free !

For free information on stock market charting take a look here - stock charts for beginners

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