How to Make Money Trading with Candlestick Charts

Stop out level for a Shooting
Star signal
If you go short on a confirmed Shooting Star
signal, get out immediately if the bulls
manage to trade the stock above the high
point. That piercing of the high point shows

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strength on the part of bulls, something you
as a short seller don’t want to see!

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Bearish Engulfing Signal
The bulls would be considered in charge of
the stock again, if they can manage to close
prices above the body of the dark candle as
shown in 
Figure 11.9
. As a short seller, you
do not want to be in this trade anymore.
Figure 11.9:
Stop out level for a Bearish
Engulfing signal

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Dark Cloud Cover
It is recommended to set your stop loss just
above the open of the dark candle of the
Dark Cloud Cover in 
Figure 11.10
. That is
the point where the bears seized control from
the bulls previously. Prices trading above
this point will negate this signal.
Figure 11.10:
Stop out level for a Dark

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Cloud signal

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Bearish Harami Signal
As shown in 
Figure 11.11
, the open of the
dark candle is resistance. It is recommended
to place a stop just above this level. The
bulls are assumed to be still in control if
prices trade above this point.
Figure 11.11:
Stop out level for a Bearish
Harami signal

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Evening Star Signal
Figure 11.12
shows an Evening Star signal
stop loss scenario. The high of the Evening
Star is a logical resistance point. Placing a
stop loss just above this point would allow
the candlestick trader to get out with only a
small loss.
Figure 11.12: