Prices in the major Stock Indexes embarked on a nearly-vertical ride after the appearance of a 'Kobe Cruiser' bullish Candlestick formation in the Dow Industrials on July 15, 2009. As of this morning, Dow prices have risen almost 595 points since that date.
We were interested to see whether this particular formation might possess bullish instincts, since it is a variation of the well-known 'Morning Star' pattern which is universally recognized as a bearer of good tidings. Here's the difference: The classic Morning Star is composed of three price bars, of which the first is a tall black bar, indicating a strong 'down' day; the second will show a small 'real body' (the 'Star') situated near the low of the tall black bar; and the third will be a tall white bar, denoting a strong 'up' day. The 'Kobe Cruiser' contains three Stars, rather than only one, located between the tall black candle and the tall white candle.
Now we have the answer to our question: the Kobe Cruiser packs a bullish wallop.
We had written earlier about still another variation of the Morning Star, which we call the 'Tokyo Express.' This one features two Stars situated between the black candle and the white candle. It, too, is a mighty powerful customer: It was the leadoff act of the Great Rally of 2009 on March 10. From that day forward to the new top today, the Dow Industrials have risen 926 points.
It is exciting, first of all, to discover unheralded variations of classic Candlestick reversal patterns, and to ponder whether they carry within them the reversal seeds of the original. It is even more rewarding when your discovery and your intrigue come to pass in the passage of time exactly as you thought they might ' and the New Pattern On The Block turns out to be a powerhouse.
William Kurtz July 21, 2009
About the Author:
The author owns CandleWave, LLC, which publishes his investment newsletter twice weekly at http://www.candlewave.com/ He is also the creator of the 'Candelaabra' system of technical analysis for use in all financial markets. 'Candelaabra' spots trend reversals even before they emerge! 'Candelaabra' is available on a money-back Guarantee basis in a 30-day Joint Trial of Genesis' 'Trade Navigator' platform and of Candelaabra, together. They're both available in a single package at http://www.candelaabra.com/ Money-back Guarantee! Come and get them before this offer expires! William Kurtz CandleWave, LLC info@candlewave.com