The lessons shared here are tried to be short and simple. Designed for people who are just starting out in trading, or those who want to increase performance. We’ll talk about Shooting star again if we knew about Hammer and Inverted hammer three days ago.
What is a Shooting Star?
The Shooting Star is a Bearish Candlestick with a long upper shadow, Small or no lower shadow, and a little real body just near low of the day.
How to identify Shooting Star?
When the Shooting Star appears at the top, that is, it touches the resistance it indicates a Bearish. But you have to be careful with this shooting star, it needs to be confirmed what I said above, but if the shooting star is not in resistance then it may be a false signal. So we have to keep a close eye on whether the Shooting Star is really in the Major Resistance not in the Minor zone.
Next, don’t confuse Shooting Star with Inverted Hammer. According to the last lesson we learned, when the downtrend is over, the Hammer and Inverted hammer will appear, which means that the Inverted Hammer should appear on the Support. But when it comes to Uptrend at the top, it’s called a Shooting star. as in the picture below.
If you have previously placed BUY position and the Shooting Star has appeared, you should prepare a close position, and prepare for Sell position again with the next Bear candlestick after the Shooting Star. Because the next Bar's high should be stay below the high of Shooting Star and close below the close of Shooting Star.
This is a short trading lesson that this Clan provides for you today. Happy trade everyone.
You Could Be Better Than You Think You Could Be.
