![]() Taking the above chart into account, there are several steps you need to follow in order to effectively identify and trade the shooting star candlestick pattern. Then, when buyers face strong resistance, the market reverses and a bearish downtrend starts. As you can see, in the GBP/USD 30-min chart below, the shooting star pattern appears after an uptrend and indicates a price reversal of the current trend. Still, with a quick look at a trading chart, you’ll be able to understand what the shooting star candlestick pattern looks like. Luckily, identifying the shooting star pattern is simple and straightforward – basically, you need to find a candlestick pattern that has a long upper shadow, short or no lower shadow at all, and a really small body.įor those of you who are not familiar with candlestick patterns, we suggest you visit our Japanese Candlestick Chart Pattern course. Join Free Now How to Identify and Use the Shooting Star Candlestick Pattern in Forex Trading?Īs with any other technical analysis candlestick pattern, you must know how to correctly identify the shooting star pattern in order to use it as part of your forex trading strategy. Get free access to our live streams and our market analysts will show you exactly how to read the charts. While the first two patterns appear at the end of a downtrend, the shooting star occurs at the end of a bullish trend and is, in essence, a top reversal pattern.ĭo you want to learn more about chart patterns? The shooting star candle looks exactly the same as the bullish hammer pattern and the inverted hammer candlestick pattern, however, the difference between these pattern two is that they occur in different market scenarios. It has a very similar structure as the Gravestone Doji candlestick pattern, though the latest has no body, meaning the opening and closing price are the same. In terms of its structure, the shooting star candle has a long upper shadow and a very small shooting star’s body, meaning the trading range between the opening price and the closing price is narrow. Unlike the famous Doji candlestick pattern that indicates indecision between buyers and sellers – the shooting star pattern portrays a market condition where buyers can no longer push prices higher and face a strong resistance level with the same buying pressure. This bearish reversal candlestick has a long upper shadow, little (or no) lower shadow, and a small body. What is the Shooting Star Candlestick Pattern?Ī shooting star candlestick is a unique charting pattern that comes at the end of an uptrend and indicates a potential trend top area followed by a trend reversal. The shooting star candlestick pattern – Pros and cons.How to trade forex using the shooting star candlestick pattern – Strategies and examples.How to identify and use the shooting star candlestick pattern in forex trading?.What is the shooting star candlestick pattern?. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |