How To Trade Forex With Morning and Evening Stars (1)
Forex science over time will continue to grow. Especially the technical analysis we are studying today undergoes many changes and developments. This is because of the existence of advanced tools of Computer and MT4 software. Even now the MT5 has appeared for trading.
But there are some timeless patterns of graphics. Not affected by market conditions and changes in the way execution of trading, some chart patterns can survive. Like the pattern of the Japanese Candlestick technique.
Before continuing on the discussion of Japanese candle pattern, it should be re-reminded below the movement of the chart can move in trend and trend reversal or reversal. The trend reversal pattern is always on the edge of the trend. Whether it’s at the end of a bullish trend or a bearish trend, the chart will show some signs of a reversal of the Japanese pattern.
This Japanese candle pattern consists of one candle, two candles or more than two candles. The momentum strength depends on the timeframe of the pattern’s appearance.
The pattern of stars (not necessarily translated) is one of the strong reversal patterns. The bigger the timeframe it appears the stronger the signal is shown. This star pattern consists of three candles and the naming of this star comes from the implications of the next direction. There are two types of star patterns, namely morning star and evening star. The pattern of morning star is a bullish pattern and its appearance is on the edge of the bearish trend. On the contrary, the evening star pattern is a bearish pattern and its appearance is at the end of the bullish trend.
The emergence of this star pattern has implications for the weakening of trend strength and prepares to reverse trend direction. It is rather difficult to identify the beginning and end of a trend. Usually, after a reversal then trading can be done according to the current trend direction by targeting high level (for evening pattern) and low level (for morning pattern).
How to integrate star patterns (morning and evening) is to use the appropriate RRR. At least 1: 2 or 1: 2,5. In trading this pattern of stars required discipline and forex traders will be able to survive for long.