I thought it fitting to continue along the lines of the candlestick patterns. The last module covered the Three White Soldiers and put the pattern into real time use to prove the usefulness of the pattern.
This module I want to show you yet another very reliable pattern, but on the bearish side this time. The pattern is the Evening Star and coupled with sell signals on other simple technical indicators this pattern can be very powerful!
Protecting yourself from a false signal is quite easy as well. There are times that an evening star pattern will form, but the stock or index will make one more nominal high before it begins its decline in earnest. Typically the stock will not rally anymore than 1.5% above the high, so should you see this level taken out it is a warning to you that the pattern may not be valid.
Take a look at the two examples I have given you. We will follow these stocks in real time to see how this pattern works. I will also look for the pattern in a few other stocks along the way and we can put those to the test as well.
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