EveningMorningStar

Hello traders. Today we’re going to go over to Candlestick patterns that are very popular uncommon in Forex Trading. There. Cold evening and morning star Candlestick bathrooms and the only differences are we talking about three so at the bottom. So from from there to bull market or. From bull. Bear markets. At the top. Of the trading charts so let’s go first and then into the evening start Bethan. Evening Star Candlestick pattern is as I said the most common reversal patterns. It has three candles and the first rule or step to follow in this pattern is that it must be the end of an uptrend so you must find a chart that has a clear trend like we have now. This is pretty extreme. And that’s because events almost vertically of 300 stopped in the dollar. And then you look for three consecutive candles. First candle. Shall be long and. Long bullish. So we are still here as you can see here. You know turned the Mikal can be a candle that shows the indecision by traders so it’s the best the best you can do is to book look for the Dolci candle. This is the case here so you can see if you have long fixed the upside along the outs to the downside with a very short body. And then the third candle should be to be long the red bearish bearish. So. Be more of us here. This increase shows that. We are in the uptrend. But right now you are correct. Start. Pushing to the downside and look at the street jandals and they actually tell you the full story.

 

The Fool scanned the long healthy uptrend Canto then you have indecision. The market is not has not decided either is going to continue to asset recycling to correct the downside. And then it’s decision time. The third scandal huge long scandal which more or less. Than tells you that the market is reducing and you should enter the mold sell sell the rallies so you wait for a rally and somewhere around you can start thinking about selling the better of it to stop loss above the Starplus above the previous high and then the downside and you can see that here Murie Buddhist recovery overhyped and then he pushed over more than 300

 

More than 300 pips. So as I said it’s a pattern for a trend identification. And as soon as we have them here as soon as you see that this is a new start better then you will sell. This is. The same scenario here in the dollar Kaede uptrend. We have three Kendalls and we have. A long bullish. Then you have a shocking start Kandal so you have a long way to the upside but the clothes at the bottom and then you have a long long bearish candle and another another shooting star. You can see this is all a big bearish sell signal. And then you can see that the price pushes below. And from here you more or less start thinking about entering the trade. So entering the trade loop for you then talking about 70 or 80 bips profits. Of course the stock will be above the previous high. So this is as far as evening star bearish is concerned. Let’s now at the Morningstar pattern. As you can see everything is the same. Just on the other side vice versa. So it’s a reversal pattern. Again we’re talking about tree candles and. We’re looking to identify a bottom short term bottom you know downtrend. After we identified the first bearish long can we look for a more more smaller kind of which as you said I do in this case is a hammer or a dodgy.

 

And in this case as I said it’s a hammer so often we have a long long continuation of the hammer. And then the third one is long held the candle which is actually set up of three candles. It’s time to continue pushing higher often did you see bondable second term. So that could give you those. And then the push higher and. If you just we were here so you entered your trade here Fenty.

 

Fenty for 80 or of say 24 thank you for 80. Daniel Pucho Stob low 124 50. And but then you have gained a lot of peeps 67 people.

 

If you aim to close your position at this high. So everything needs a saying now and trains. After we have it we have transceivers and then it will push to push higher for these. Look at this example dollar yen hourly chart. Again. The downtrend you will see you will know you will get

 

A long red again. Though we have D’Argent can’t see long Beeks on both sides. And then. Be a healthy green. This is classic Morningstar. Bathroom and you can see that can be pushed to higher and. To shake off some some some bad some. Bad. Because he. Is. So bitter. You too. Just to recap 2 2 2. Very very common and popular. Like Candlestick pathless evening and morning star patterns that are used for. Four trend reversals and see they are both trends we were seeing and it also offers us a chance to meet our potential losses. Given that in the scheme Morningstar you need to put your Stop-Loss load. And the pretty slow and then will for the first resistance. On the chart. To. Close your trade.

The post EveningMorningStar appeared first on The Diary of a Trader.