Monday, 20 May 2019

How to trade with the Candlestick Morning Star pattern and the Evening Star



To get profit profits by using the Evening Star and Morning Star candlestick patterns, there are a number of systematic steps that you must prepare such as the steps below

1.Identify and filter signal validity


If you meet a candlestick reversal pattern such as Morning Star and Evening Star, make sure you are in no hurry to open a position. This is because, there will be a risk of false signals that you must always be aware of. For this reason, you need to overcome this by using help from other indicators to filter the quality and accuracy of the signal.

2. Determine the Open Position Level


After you know the validation of the Morning Star pattern and the Evening Star, the next step is to determine what level you will start the market order execution. Entry rules or open position rules with these two patterns are actually quite flexible, depending on the trading system of each trader. But the easiest way you can use is by looking at the closing price on the last candle. If the third body length is greater than the first candle, a Buy or Sell Order execution can be done around the closing of the last candle. If the third candle is shorter than the first candle, prepare a buy / sell order in the middle of the last candle body.

3. Determining Profit Targets and Risk Limits

If you open a trading position, never let it just float or float without a target. This is because, prices can move freely beyond your expectations. To anticipate this, make sure you set the profit target you want to achieve and the risk limit that you can bear.
Also Read ; More Value Forex Trading With Price Action

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