proper context of the market. In this example, the stock is rising in an overall uptrend. Prices are always gyrating, so the sellers taking control for part of one periodlike in a shooting starmay not end up being significant at all. It appears after an uptrend. The long upper shadow represents the buyers who bought during the day but are now in a losing position because the price dropped back to the open. In fact, there was so much resistance and subsequent selling pressure, that prices were able to close the day significantly lower than the open, a very bearish sign. Keep in mind that just because an indicator made it onto this list doesnt mean that Im endorsing. Limitations of the Shooting Star, one candle isn't all that significant in a major uptrend. The Nison Candle Highlighter is designed to identify 28 candlestick patterns according to Steves own specifications, so you know the patterns are accurate.
The shooting star shows the price opened and went higher (upper shadow) then closed near the open. It uses full labels (except with the morning star and evening star which can look messy, but thats just my personal preference. Candlestick patterns are useless if they are not traded within the proper context of the market. There should be little to no shadow below the real body. Price Target: I suggest a risk-to-reward of at least 2, which means you are only risking one dollar for every two dollars of profit potential, or any other profit taking method you feel more comfortable with. There is an option to change the size of the graphical elements. I chose the 3 indicators below after testing many candlestick pattern indicators for MT4. Preferred Currency pairs: any, download, download the Shooting Star Forex Strategy.
Indicator ;.2 De Shooting. In major currency pairs, the shooting star is shown to be reliable at predicting. The shooting star can be useful as a sell indicator under certain. A shooting star is a bearish candlestick with a long upper shadow, little or no lower shadow, and a small real body near the low of the day.
Once a pattern is identified, the indicator shows a confirmation signal. Generally speaking though, a trader would wait for a confirmation candle before entering. For example, the price may consolidate in the area of the shooting star. This is why confirmation is required. It can identify hanging man and inverted hammer patterns as well, so the hammer and shooting star patterns are identified more accurately. Actually, there are several problems with this indicator that kept me from ranking it higher. In fact, there are many.