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TOPIC: Candlestick Pattern Quiz

Candlestick Pattern Quiz 14 Mar 2013 19:27 #1

  • redchilly
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It closed below 249.9 so no longer in an uptrend

I normally don't try to catch falling knives but it was a strong morning star at a support with the MACD histogram rising ( I should haave waited for the MACD line to cross the signal line but thats a hindsight now) hence why I took the risk of trading it.

There was another similar bullish pattern on Blackrock world which failed!
BLACKROCKWLD.png

Blue circle on the chart shows Bullish 3 white soldiers but like Evraz it failed!

Lesson learned : Only trade a Morning Star in an Uptrend when there are HHs and HLs BUT also with an upward sloping trendline :cheer:

dyor
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Candlestick Pattern Quiz 14 Mar 2013 17:26 #2

  • WaveSurfer
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no 3rd day green candle
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Candlestick Pattern Quiz 14 Mar 2013 16:21 #3

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waverider2 wrote:
For some reason - i think today;s the bottom.

I have just looked at the 15 mins chart as a start and I just think today could see the lows.

But pretty gutted that the morning star didnt play out - especially when its one of the most realiable pattern.





I think there's more to the downside with this one... Too many bearish candles taking out any sniff of a bullish move - in some occasions with a single swoop (imho!)

Good luck either way!
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Candlestick Pattern Quiz 14 Mar 2013 12:40 #4

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For some reason - i think today;s the bottom.

I have just looked at the 15 mins chart as a start and I just think today could see the lows.

But pretty gutted that the morning star didnt play out - especially when its one of the most realiable pattern.
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Candlestick Pattern Quiz 14 Mar 2013 12:03 #5

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This Morning Star faded without rising! :angry:
EVRAZ.jpg
dyor
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Candlestick Pattern Quiz 11 Mar 2013 09:23 #6

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2 parts opened at 266
Order triggered for another two parts at 262
SL at 247 which is 2 pip below 249
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Candlestick Pattern Quiz 10 Mar 2013 13:20 #7

  • WaveSurfer
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Thanks Redchilly,

its a powerful set-up al-right, although looking at your chart this looks like it will eventually take it's recent highs. 280 being the key to it all....

here's what i think will happen based on assumption from the chart you have posted and anticipate a potential move.

The fact that the 2nd green bar has taken out the previous red candle in a single day says a lot about the reversal taking place.

if this can get another green bar and test the 280/290 level then followed by a red candle that will be an opp to buy the dip and as you rightly point out.. 260's could be a good area.

then there is the potential to retest and break that 280 and go on to test 290/300, then back test that 280 level again and possibly holding it by confirming support...by doing so it will put in a right Shoulder what could potentially an inverse H&S forming (left S at 280 & Head @ the lows) neckline will then come in at approx 300p and possibly on the way to breaking out to HH's, which could lead to 60pips or so from 300p approx.

i will be watching this one.

Thanks WS
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Candlestick Pattern Quiz 10 Mar 2013 11:10 #8

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WS you are spot on mate + good try waverider2

The chart is of EVRAZ EOD daily & the green candle of the Morning Star cycle formed on 8th of march.

1. Its a powerful & optimal morning star

2. Its powerful & peculiar because the big red candle was followed by a gap down on open and it was then followed by a gap up before the big green candle which shows its strongly bullish. also green candle went all the way above the high of the red candle which shows the strength of the bulls. gap up + green candle engulfs/pierces previous 3 candles formed on 4-5-6th of march. its also backed up by volume which was more than average on the day of green candle. All this technically points to a forceful reversal.

3. Look for a morning star when the primary trend is rising. Then the morning star appears as part of a downward retrace of that uptrend. When an upward breakout occurs, price joins with the rising price trend already in existence.
Chart below shows primary uptrend by HHs & HLs with the current downward retrace which will probably end with a morning star.
image_2013-03-10.jpg

Also as mentioned by Wavesurfer, its formed at a previous support as shown by the green line. A close below 250.50 on 7th of march (day of doji formation) would have meant its not a downward retrace in an uptrend & alarm bells would have started ringing!

4. There are many ways of trading this strong bullish signal. Most traders would plan on entering at the open of the next candle. But the length of the third candle has diluted the risk to reward potential on this trade. You can wait for a pullback to 50% of the big green candle but then you might miss the trade all-together! So I will divide the trade in four parts. I will open 2 parts on the open of the next candle on monday and I will place an order to buy other two parts at 50% of the green candle @262. My SL for all the four parts will be below the low of the doji @ 249.

I will post a follow up chart as go along and as I take up the trade on monday.
We will see how this classic morning star candlestick pattern pans out! :)

PS - I am a short term trader & I won't be hanging on this trade for too long - 5-7 days max & I can be in & out very quickly!
dyor
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Candlestick Pattern Quiz 09 Mar 2013 12:02 #9

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1. Island formation?
2. Doji - indecision right at support
3.Worth trading, yes - but wait till it breaks the down trend line...its close (circ 280). this would also be higher high

4. How to trade this pattern - perhaps wait for it to retrace to either 38% fib from the lowest point of the doji to the highest green candle or the mid point of the long green candle (maruzubo). Alternatively catch it on the 20 MA line if you think the trend has changed.

Good to see this quiz Red Chilly.
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Candlestick Pattern Quiz 09 Mar 2013 11:55 #10

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1 morning star
2 nice red big candle - bear momentum exhaustion, at previous support/breakout point, bulls reverse the trend - lovely doji and confirmed by gap up
3 yes
4 cant be sure as need to see the chart in whole, but by going by the chart you have posted either wait for a pullback to 245/65 level or wait for it to clear the 280's

rgds WS
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Candlestick Pattern Quiz 09 Mar 2013 11:34 #11

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image_2013-03-09.jpg


1. what is the candlestick pattern shown in the red circle on the above chart?
2. what is peculiar about this particular pattern?
3. is it worth trading?
4. if it is, how to trade this pattern?
dyor
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