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RoboForex - www.roboforex.com
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[QUOTE="Vlad RF, post: 199846, member: 61796"] [B][SIZE=5]How to Trade Morning Star and Evening Star?[/SIZE][/B] [I]Author: Maks Artemov[/I] [CENTER][IMG]https://blog.roboforex.com/wp-content/uploads/2021/09/12.jpg[/IMG] [B]Dear Clients and Partners,[/B][/CENTER] This overview is devoted to two reversal candlestick patterns: Morning Star and Evening Star. These two are definitely rare visitors to charts, yet they remain quite popular. Like other reversal patterns, the Morning and Evening Stars form at the highs and lows of the price and contain three candlesticks each. [SIZE=5]How does a Morning Star form?[/SIZE] This pattern forms at the lows of the price chart. When a descending impulse is going to subside, the price makes a minor surge upwards, so that the candlestick opens and closes with a gap. [B]Conditions required for the pattern to appear:[/B] [LIST=1] [*]A support or resistance level; [*]The first candlestick has a long body of the same color that the current trend is – and small shadows. [*]The second candlestick opens with a gap, has a small body and short shadows. It may be of the opposite color that the current trend is; in most cases, it has little significance anyway. [*]The third candlestick opens with a gap and closes above the opening price. It must be of different color than the first candlestick. [/LIST] Open a position after the third candlestick closes. Place a Stop Loss at the low of the pattern. If you are trading an instrument with a large spread and on a small timeframe, you may add the average spread to the low to compensate for the error. You may place a Take Profit at the nearest resistance level or as 1:4 to the SL. A Morning Star looks as follows: [IMG]https://blog.roboforex.com/wp-content/uploads/2021/09/Morning-Star-1-1198x630.png[/IMG] [SIZE=5]How does an Evening Star form?[/SIZE] An Evening Star appears at the highs of the price chart, and its structure is totally opposite to that of the Morning Star. [B]Conditions required for the pattern to appear:[/B] [LIST=1] [*]A support or resistance level [*]The first candlestick is ascending; it has a long body of the same color that the current trend is. [*]The second candlestick has a small body and opens with a gap. The color of the candlestick is irrelevant. [*]The third candlestick also opens with a gap; its color is opposite to that of the first one, and the closing price is below the opening price. [/LIST] Place an SL at the high of the pattern. As with the Morning Star, you may compensate for the error by placing the SL plus the average spread. The TP belongs to the nearest support level or is at 1:4 ratio with the SL. [URL=https://blog.roboforex.com/blog/2021/09/16/how-to-trade-morning-star-and-evening-star/?utm_source=earnforex.com&utm_medium=cpc&utm_campaign=rf_en_external_forums_blog&utm_content=text]Read more at R Blog - RoboForex[/URL] [B]Sincerely, RoboForex team[/B] [/QUOTE]
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