For those who have taken trades without a concrete exit I am sure your exit was to "wait for a sign of weakness." As we looked at LVS the other day, we know now what weakness is not. So exactly, what is it?

I am going to throw a few things at you to determine in a bullish trending stock what a sign of weakness is. Candlesticks are the best way to determine weakness and here are some of the most common signals.

Hanging Man candlesticks form when a security moves significantly lower after the open, but rallies to close well above the intraday low. The resulting candlestick looks like a square lollipop with a long stick. If this candlestick forms during a decline, then it is called a Hammer.

The Engulfing Pattern
The Engulfing Pattern is a reversal pattern that can be bearish or bullish depending upon whether it is in an uptrend or downtrend. The first day is characterized by a small body, followed by a day whose body completely engulfs the previous day's body.

The Shooting Star
Shooting Star A single day pattern that can appear in an uptrend. It opens higher, trades much higher, then closes near its open. It looks just like the Inverted Hammer except that it is bearish.

The Harami
A Harami is a two day pattern that has a small body day completely contained within the range of the previous body, and is the opposite color.

An Evening Star is a bearish reversal pattern that continues an uptrend with a long white body day followed by a gapped up small body day, then a down close with the close below the midpoint of the first day.

The Dark Cloud Cover is a bearish reversal pattern that continues the uptrend with a long white body. The next day opens at a new high then closes below the midpoint of the body of the first day.

There are plenty more to discuss, but this is all I had time for. Hoefully this reinforces the reasons candlesticks are valuable and supplements what you have studied through technical analysis. Who wants to pick the next topic of discussion?