Several reasons for shorting the stock
1. A bearish TK-Cross below the Kumo
2.Price could not get into the cloud - Span B of the cloud acted as resistance and price moves downwards
3. There is a small Doji before the first red candle indicating indecision . But this was soon solved as is shown by the engulfing red candle...
"Three Stars in the South" is one of the most reliable bullish reversal pattern but it does not form very often. Identification criteria is as under. The market is in a downtrend;
The first candle is black with a long real body, long lower shadow, and no upper shadow;
The second candle is black with a shorter real body and a higher low than the first...