CANDLESTICK STRATEGIES - Candlestick Star pattern


Strategy 1:
Given a great number of different candlestick formations, it would be nearly impossible to gauge the overall profitability of all candlestick strategies in a single study. Instead, we will focus on specific reversal signals that we believe have intuitive value as it relates to market sentiment. In this particular case we will look at both the Morning Star and Evening Star formations as buy-and-sell signals.
CANDLESTICK-STRATEGIES

A Morning Star formation is a bullish reversal signal for an overall downtrend. Given fairly consistent losses, we see a strongly negative full-bodied first candle. The second candle opens at or below the previous close, trading within a relatively narrow range with the high staying below the midpoint of the first candle. The third candle is strongly positive and closes above the midpoint of the first candle. This tells us that bearish sentiment is unable to push price below previous lows, and risks remain for a reversal in price trends.
morning star

The Evening Star is effectively the opposite of a Morning Star, as price starts in an uptrend and the first candle is strongly positive. The second candle opens above or at the previous close, trading within a fairly narrow range and with its low above the previous bar’s midpoint. The third candle is strongly negative and closes below the first candle’s midpoint. This gives warning that bulls are unable to push price to new heights, and a strongly bearish candle hints at further downside potential through subsequent trade.

Sample chat:
Pin Bar Strategies

morning star

morning star


Nak Belajar TEKNIK SWING - FOREX???

READS MORE

Risk Warning Trading Forex and Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Financial Services Guide (FSG) and Product Disclosure Statements (PDS) for these products is available from Pepperstone Financial Pty Ltd to download from this website or hard copies may be sent by contacting the offices at the number above. The FSG and PDS should be considered before deciding to enter into any Derivative transactions with Pepperstone Financial Pty Ltd. Pepperstone Financial Pty Ltd is regulated by ASIC [ASFL 414530]. © 2014 Pepperstone Financial Pty Ltd | ASFL 414530703 | AFSL 414530