Star
1. A type of candlestick formation that is identified when a small bodied-candle is positioned above the price range of the previous candle as a result of a gap in the underlying assets price.
2. One of the four categories (quadrants) of the BCG growth-share matrix that represents the division within a company that has a large market share in a rapidly expanding industry. Investopedia Says:
1. Small bodied candles in the star position often suggest that market participants are becoming indecisive and that the strength of the current trend could be reversing. For a valid star pattern, most traders will watch for small bodied candles to follow a large bodied candle because this setup generally leads to a higher probability of a true trend reversal than when the body of the first candle is small.
2. A star requires investment capital to expand continually within a fast growing industry, thus maintaining its advantage. Should the industry mature with the star positioned as a leader, the star will transform into a cash cow. Related Terms:
BCG Growth-Share Matrix
Cash Cow
Dog
Evening Star
Loss Leader
Morning Star
Porter's 5 Forces
Problem Child
Real Body |