Shooting Star Candlestick Pattern - पूरी जानकारी

 Shooting Star Candlestick Pattern - पूरी जानकारी .

How to Trade the Shooting Star Candlestick Pattern.

You can get all the information you require regarding the Shooting Star candlestick pattern here.

·      The Shooting Star Candlestick Pattern: Explained.

·      How to Recognize the Shooting Star Candlestick Pattern.

·      The Shooting Star Candlestick Pattern's variations.

·      Trading the Shooting Star Candlestick Pattern: A Guide.

·      Trading Techniques for the Shooting Star Candlestick Pattern.

 

Ø Strategy 1: Retractions on Bare Charts.

Ø Strategy 2: Using Support Levels to Trade the Shooting Star.

Ø Strategy 3: Using Moving Averages to Trade the Shooting Star.

Ø Strategy 4: Using RSI Divergences to Trade the Shooting Star.

Ø Strategy 5: Using Fibonacci to Trade the Shooting Star.

Ø Strategy 6: Using Pivot Points to Trade the Shooting Star.

The Shooting Star Candlestick Pattern: Explained.

A Japanese candlestick pattern is called the Shooting Star.

It’s a bearish reversal pattern.

It usually shows rejection from higher prices and comes following a price rise to the upside.

Because we anticipate a bear move following the appearance of a Shooting Star at the appropriate time, the pattern is bearish.

It's a reversal pattern since we want to see price growth prior to the Shooting Star appearing, which is also a common indication that a trend is coming to an end.

The Hanging Man candlestick pattern is reflected in the Shooting Star pattern.

How to Recognize the Shooting Star Candlestick Pattern.

One candle creates the Shooting Star candlestick pattern.

To recognize the Shooting Star candlestick pattern, follow these steps:

1.    The body of the candle is small.

2.    The top wick needs to be larger than the body.

3.    It should be very small or have no wick at the bottom.

4.    It makes no difference what color the body is.

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The Shooting Star Candlestick Pattern's variations.

On your charts, the Shooting Star candlestick pattern can seem a little different.

It makes no difference what color the body is; it can be either green or red (bullish or bearish).

It also doesn't matter if there is a wick (shade) at the bottom. You're fine as long as it's small.

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Trading the Shooting Star Candlestick Pattern: A Guide.

Finding a candle on your charts with the same form is not enough to trade the Shooting Star candlestick pattern.

The Inverted Hammer candlestick pattern is one of several candlestick patterns that actually have the same shape.

Confused?

Let me clarify.

The location of a pattern's appearance is equally as important as its shape in determining its validity.

This implies that a shape that appears in multiple places could have different meanings.

The price should first rise, indicating a bullish move, before we trade the Shooting Star.

A potential downside reversal is indicated by the appearance of a Shooting Star following this positive increase.

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It's easy: when the candle's low is broken, the Shooting Star pattern is traded.

You should short that conservative trigger.

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Because trading doesn't always go as planned, you also want to protect yourself.

And we employ a stop loss for that.

There are numerous varieties of stop losses.

The most popular method is to set it using the other side of the pattern.

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However, hold off on trading the Shooting Star just yet.

We need to know a few more things.

The Shooting Star candlestick pattern should ideally be traded in conjunction with other technical analysis or indicators to improve accuracy.

The following are some methods for trading the Shooting Star pattern.

Trading Techniques for the Shooting Star Candlestick Pattern. 

Strategy 1: Retractions on Bare Charts.

The Shooting Star is an excellent pattern to keep watch out for when the price is declining because it is a bearish reversal.

Just wait for a pullback to begin, and then look for the Shooting Star.

That frequently signals the end of the retreat and the beginning of the next downward move.

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Strategy 2: Using Support Levels to Trade the Shooting Star.

Price reversals can be found at levels of support and resistance.

We want to trade the Shooting Star using resistance levels since we are searching for moves to the downside.

How it operates:

·      On your charts, draw the levels of resistance.

·      Await the price to rise and reach the level of resistance.

·      Verify whether a shooting star shows up at that level.

·      Short when the price above the Shooting Star's low

·      Assume a downward move and set your take-profit and stop-loss levels.

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Strategy 3: Using Moving Averages to Trade the Shooting Star.

When it comes to trading patterns, moving averages are excellent indicators.

When the price is declining, the strategy is to trade pullbacks to the moving average.

How it operates:

·      When the price falls below a moving average, you can identify a downtrend.

·      Await a price increase before it reaches the moving average.

·      Verify whether a shooting star shows up at the moving average.

·      Short when the price above the Shooting Star's low

·      Prepare for another leg to the downside by setting your take-profit and stop-loss places.

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Strategy 4: Using RSI Divergences to Trade the Shooting Star.

Compared to the other trading strategy, this is a little different.

The price must first be on an upward trend, producing higher highs and higher lows, in order to identify a bearish RSI divergence.

It operates as follows:

·      Look for an upward trend.

·      After each leg to the upside, note the highs the price reaches.

·      Compare the price highs and the RSI indicator together.

·      You can identify a divergence when the price makes higher highs and the RSI makes lower highs.

·      You now watch for a Shooting Star to emerge at a higher price high that coincides with a lower RSI high.

·      Short when the price above the Shooting Star's low

·      Assume a downward move and set your take-profit and stop-loss levels.

For Example…………..........................................................................

Strategy 5: Using Fibonacci to Trade the Shooting Star.

The Fibonacci retracement technique is another well-liked method of trading the Shooting Star candlestick.

When the price tends to reverse, Fibonacci displays retracement levels.

Different levels are more likely to complement the Shooting Star pattern depending on the trend's intensity. More information about the various Fibonacci retracement levels may be found here.

The strategy operates as follows:

·      The price should be on a downward trend or at the beginning of a new one.

·      A move to the upside will then occur, and you wait for it.

·      Draw the levels from the move's peak to low using your Fibonacci tool.

·      You should wait till the price reaches a Fibonacci level and prints a shooting star.

·      Short when the price above the Shooting Star's low

·      Assume a downward move and set your take-profit and stop-loss levels.

For Example……………...................................................................

Strategy 6: Using Pivot Points to Trade the Shooting Star.

Pivot points are automatically determined levels of resistance and support based on mathematical calculations.

Although the Weekly and Monthly Pivot Points are also commonly employed, the Daily Pivot Points are the most popular if you are day trading.

To trade the Shooting Star pattern using Pivot Points, follow these steps:

    ·      Turn on your charts' Pivot Points indicator.

·      Look for pivot points that is above the price; these will typically act as resistances.

·      The price should ideally be declining, but this is not necessary.

·      Await a price increase to reach a Pivot Point level.

·      You want to see a Shooting Star pattern at that level, which indicates that the level is being rejected.

·      Short when the price above the Shooting Star's low.

·      Assume a downward move and set your take-profit and stop-loss levels.

For Example…………......................................................................

What Is The Shooting Star's Success Rate?

The Shooting Star candlestick pattern has a 60% success rate, according to Thomas N. Bulkowski's Encyclopedia of Candlestick Charts.