I received several questions over the weekend regarding the need for confirmation for a Trend Reversal (TR) signal. Since I do note this frequently on my charts, I thought I would show a quick example of a TR signal that is certainly confirmed. In the following weekly chart on PLT (Plantronics) you will note the Shooting Star candle (the TR signal) and the subsequent downtrend move to the 50 Day Moving Average after:
That is clear confirmation of the uptrend reversal noted by the Shooting Star candle for the week of May 13 2011. Hope this example helps to show what to look for when viewing TR candles.
One final note: the stock is sitting on the 50 Day Moving Average so a bounce is possible. If no position, one could plan a new long position here.