The Trend Reversal signal

One of the common Trend Reversal signals is the Shooting Star. Here is a brief explanation:

On Monday, March 26 2012 I noted that one such candle had formed on the Daily chart for FINLĀ (Finish Line Inc) and that it would need confirmation the following day. Here is a current Daily chart of FINL:

As you can see, the price action today is NOT confirming the Shooting Star candle from yesterday. This is a key point to make here: these Trend Reversal patterns do in fact need confirmation from subsequent price action (in this case, the next day’s price action).

Source: http://www.vss2000.com/support/iChartPROc.asp