Morning Star Candlestick Pattern. - पूरी जानकारी
How to Trade the Morning Star Candlestick Pattern?
·
The Morning Star Candlestick
Pattern: Explained.
·
How to Recognize the Morning Star
Candlestick Pattern.
·
The Morning Star Candlestick
Pattern's variations.
·
Trading the Morning Star Candlestick
Pattern: A Guide.
·
Trading Techniques for the Morning
Star Candlestick Pattern.
Ø Strategy 1: Retractions on Bare Charts.
Ø Strategy 2: Using Support Levels to Trade the Morning Star.
Ø Strategy 3: Using Moving Averages to Trade the Morning Star.
Ø Strategy 4: Using RSI Divergences to trade the Morning Star.
Ø Strategy 5: Using Fibonacci to trade the Morning Star.
Ø Strategy 6: Using Pivot Points to Trade the Morning Star.
The Morning Star Candlestick Pattern: Explained.
Japanese candlestick patterns include the Morning
Star.
It is a pattern of bullish reversal.
It usually manifests itself following a drop in price
and indicates a rejection of lower prices.
The pattern is bullish because we anticipate a bull
move following the appearance of a Morning Star at the proper time.
It's a reversal pattern since we want to see price
decline before the Morning Star shows up. As a result, it frequently indicates
the conclusion of a trend.
The Evening Star candlestick pattern is replicated in
the Morning Star pattern as well.
How to Recognize the Candlestick Pattern of the Morning Star.
Morning Star Candlestick Pattern Variants.
It doesn't matter if the second
candle's body is green or red, representing bullish or bearish sentiment.
It might just have little wicks above and below for a body.
This is how it would appear on your charts:
The Morning Star Candlestick Pattern: How to Trade It.
Finding a pattern with the same form on your charts
is not sufficient to trade the Morning Star candlestick pattern.
Let Explain..
A pattern is legitimate not just because of its shape
but also because of where it appears.
This implies that a shape that appears in multiple
places could signify different things.
When trading the Morning Star, we are looking for a
downward, negative swing in the price.
Following this negative move, the appearance of a
Morning Star indicates a potential positive reversal.
Look at.
It's easy to understand: if the previous candle's
high is broken, the Morning Star pattern is traded.
That serves as your long-term conservative trigger.
Look at.
Now that things don't always go as planned when
trading, you also want to safeguard yourself.
And we follow a stop loss for that.
There are numerous varieties of stop losses.
However, hold off before trading the Morning Star
just yet.
There are also other things to be aware of.
The Morning Star candlestick pattern should ideally
be traded in conjunction with other forms of technical analysis or indicators
to maximize accuracy.
Trading Techniques for the Morning Star Candlestick Pattern.
Strategy 1: Retractions on Bare Charts.
When prices are rising, it's wise to keep an eye out
for the Morning Star pattern, which is a bullish reversal pattern.
Simply watch for the beginning of a pullback to
identify the Morning Star's appearance.
That frequently signals the end of the pullback and
the beginning of the new upward leg.
FOR Example............................
Strategy 2: Using Support Levels to Trade the Morning Star.
Levels of support and resistance are excellent sources of price reversals.
How is it worked?
o Charts should have support level drawings.
o Await a drop in price that reaches the support level.
o Verify if there is a Morning star there.
o When the price hits the Morning star peak, invest heavily.
o Assume a move to the upside and set your stop loss and take profit levels.
Example…….............
Strategy 3: Using Moving Averages to Trade the Morning Star.
For trading trends, moving averages are excellent trading indicators.
When prices are rising, the strategy here is to trade pullbacks to the moving average.
How is it worked?
o Look for an upward trend where the price exceeds a moving average.
o A price drop toward the moving average is what you should watch for.
o Verify whether a Morning Star shows up at the moving average.
o When the price hits the Morning Star peak, invest heavily.
o Determine your take-profit and stop-loss levels and anticipate one more upward leg.
Example………..............
Strategy 4: Using RSI Divergences to Trade the Morning Star.
Compared to the other trading tactics, this is a little different.
The price must first be in a downtrend and making lower highs and lower lows in order for there to be a bullish RSI Divergence.
How is it worked?
o Identify a downward trend.
o After every leg to the downside, note the lowest points the price hits.
o Analyze the price lows and the RSI indicator together.
o You have identified a divergence when the price is making lower lows and the RSI is making higher lows.
o You now have to wait for the appearance of a Morning Star at a lower price low that corresponds to a higher RSI low.
o Invest when the price reaches the Morning Star peak.
o Assume a move to the upside and set your stop loss and take profit levels.
Example………....................
Strategy 5: Using Fibonacci to Trade the Morning Star.
Using the Fibonacci retracement tool is a common method of trading the Morning Star candlestick.
Fibonacci illustrates retracement levels, or points at which price tends to regularly reverse.
Different levels are more likely to work better with the Morning Star pattern depending on the strength of the trend. More information about the various Fibonacci retracement levels may be found here.
How is it worked?
o You desire an upward trend in the pricing.
o Next, you await a decline, which will inevitably occur eventually.
o Using your Fibonacci tool, sketch the levels of the motion from its low to its high.
o You are waiting for the price to reach a Fibonacci level and create a Morning Star.
o When the price hits the Morning Star peak, invest heavily.
o Assume a move to the upside and set your stop loss and take profit levels.
Example………...................
Strategy 6: Using Pivot Points to Trade the Morning Star.
Pivot points are automatically determined levels of resistance and support based on mathematical calculations.
The Daily Pivot Points are the most commonly employed while day trading, though the Weekly and Monthly are also often utilized.
Here's how to use pivot points to trade the Morning Star pattern:
o Turn on your charts' Pivot Points indicator.
o Examine which pivot points are less expensive; these will typically serve as a source of support.
o While not necessary, it is ideal to see the price on an upward trend.
o Await the price dropping to a Pivot Point level.
o At that point, a Morning Star pattern should show, indicating that the level is being rejected.
o When the price hits the Morning Star peak, invest heavily.
o Assume a move to the upside and set your stop loss and take profit levels.
Example……..
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