Gabrielle W

Follow me on Instagram @thechartwhisperers

December 13, 2019

A Month of Candlestick and Chart Patterns

 

Welcome to week three of Candle Stick and Chart Patterns. This week I will be going over the Morning Star pattern, Evening Star pattern and the Shooting Star pattern. All three of these patterns are decisive reversal signals and recognizing them will help you lock in profits and find excellent entries 

Morning star

Three-stick pattern: one indecisive doji (cross like candle, tiny body and very small wicks) between a long red and a long green. The ‘star’ will have no overlap with the longer candle bodies.

 

A sign of hope in a bleak downtrend. This signifies a large lessening of selling pressure.

 

Theory

Practice

Evening star

3 candle pattern.

Equivalent to bullish morning star but formed in an uptrend. 

Doji candle sandwiched between a long green candle and a large red candle.

 

Indicates reversal of an uptrend, and is particularly strong when the third candlestick erases the gains of the first candle.

 

Theory

Practice

Shooting star

Same shape as the inverted hammer but is formed in an uptrend.

Small lower body, long upper wick.

 

The market will gap slightly higher on opening and rally to an intra-day high before closing at a price just above the open – like a star falling to the ground.

 

Theory

Practice

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