Star

AAA

DEFINITION of '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.

Star



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 EXPLAINS 'Star'

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
  1. BCG Growth Share Matrix

    A planning tool that uses graphical representations of a company’s ...
  2. Dog

    One of the four categories or quadrants of the BCG Growth-Share ...
  3. Cash Cow

    1. One of the four categories (quadrants) in the BCG growth-share ...
  4. Loss Leader Strategy

    A business strategy in which a business offers a product or service ...
  5. Porter's 5 Forces

    Named after Michael E. Porter, this model identifies and analyzes ...
  6. Problem Child

    A company’s business unit that has a small market share in a ...
Related Articles
  1. Active Trading

    An Introduction To The Relative Strength ...

  2. Forex Education

    Stochastics: An Accurate Buy And Sell ...

  3. Trading Strategies

    Momentum Indicates Stock Price Strength

  4. Active Trading

    An Introduction To Oscillators

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center