A non-ideal Morning Star bullish reversal pattern formed, supported by the up trend line.
Non-ideal because the third day of the pattern did not close higher than the mid-point of the first day.
The pattern was formed below the 10d EMA and stochastic oscillator %D is below 20; this passes the candle pattern filtering.
Volume analysis reveals that the long black candle was formed with heavy volume.
However, the star despite having a much smaller real body and smaller intra-day range traded with even greater volume.
This shows that a large number of shares changed hands from the "weak hands" to the "smart money" at this turning point.
The third day of the pattern shows that the bulls came in force with heavy volume as well.
GMMA long-term group has not narrowed; it is moving sideways in a parallel pattern with minimal amount of compression.
GMMA short-term group has penetrated the long-term group and then turned up.
Outcome:
21 Feb: Opened LONG at $110.50
6 Mar: Closed at $105.90
Reason for closing: Stop-loss order triggered.
Loss $4.60, 4.2%
