daytrade diaries... wednesday, page-315

Kevi,

I was watching OKN today after your call on the morning star pattern. I'm in the middle of Steve Nisson's book "Beyond Candlesticks" so it was very topical. I hate to offer advice to someone who clearly knows a lot more about charting than I do but I'm going to anyway - sorry.

When describing the morning and evening star patterns Nisson says that the candle on the third day must close well inside the body of the first day's candle. This didn't happen with OKN so it never became a morning star. Moreover the further the candle on the third day closes inside the first day's body the more effective the pattern.
If you have a look at a chart of HSP you will see a classic morning star has just formed.

cheers and thanks for the link to the candlestick website -I wasn't aware of that one - it has great explanations and diagrams.