Japanese Candlestick - Reversal

Some of the bearish and bullish Japanese Candlesticks


On Tuesday Dow instead of turning down, it went up by 179 points despite of the "Doji" candle on last Friday and a "Shooting Star" candle on Monday. Is there anything wrong with the Japanese Candlestick? The answer is no, "Doji" and "Shooting Star" are bearish candles on uptrend chart, however they need confirmation for reversal. If one will to look carefully at the candlesticks on the above chart, one can notice that on every reversal point there is a bearish or bullish candlestick but the present of these candlesticks does not necessary mean that the trend will reverse, confirmation is needed. For example if on Tuesday, Dow instead of putting on 179 points, it dropped 179 points, then the red candle due to this 179 points drop would confirm that the downtrend has started, Dow would be expected to move lower and lower in the next few sessions to complete the sub-wave v.