Candlestick patterns give a good picture about the supply and demand of the market or a stock. It allows you to see at what levels, the buyers lost control and sellers gained control and vice versa. A trader can see where, these events take place and at what price. They also mark a turning point in a trend, showing where the price action in the trend stops and a new trend begins.
There are certain patterns that are very common with candle sticks. The SPX formed one of these classic candles yesterday.
SPX yesterday, made a nice Shooting Star candle stick pattern, which if you break it down means that the bulls were able to take the market higher during the day but the selling pressure was to much and forced the market to close down.
We do have PPI data this morning, which could send the market higher. So stay nimble, stick to your plan and your stops!
