The Candlestick Patterns (4) -- More about morning star and evening star

 

  Candlestick patterns -- More about morning star and evening star

Morning star is sometimes very similar to hammer or doji. No need to care about this definition too much. As long as the market language shows the price is going up, it can be read as morning star.

Evening star is the same. It looks like shooting star or doji in some charts.

Candlestick patterns -- Morning star

Tips:

• Arrow place shows a morning star.
• On the left side is a red bar, on the right side is a green bar. 
• The upper line is buy point line. It is the star's left side bearish bar's open price. If break out this point, long it.
• The lower line is stop loss line. This is the star's left side bearish bar's lowest point, if price goes down below, means this is not a morning star.

Candlestick patterns -- Morning star

• Arrow place shows a morning star.
  
• On the left side is a red bar, on the right side is a fake red bar( means it is a bullish bar).
  
• The upper line is buy point line. It is the star's left side bearish bar's open price. If break out this point, long it.
• The lower line is stop loss line. This is the star's left side bearish bar's lowest point, if price goes down below, means this is not a morning star.
• There are several times of consolidation after break out. This is very normal. What can traders do? If no below stop loss line, hold the long position.
  

Candlestick patterns -- Evening star

• Arrow place shows an evening star.
• On the left side is a green bar, on the right side is a red bar.
  
• The lower line is sell point line. It is the star's left side bullish bar's open price. If break out this point, short it.
• The upper line is stop loss line. This is the star's highest point, if price goes up above, means this is not an evening star.
• There are several times of consolidation after break out. This is very normal. What can traders do? If no above stop loss line, hold the short position.

 

Candlestick patterns -- Evening star

 

• Arrow place shows an evening star.
  
• On the left side is a green bar, on the right side is a red bar.
  
• The lower line is short point line. It is the star's left side bullish bar's open price. If break out this point, short it.
• The upeer line is stop loss line. This is the star's highest point, if price goes up above, means this is not an evening star.

 

Then in the stock, NFLX weekly chart:

Candlestick patterns -- Morning star and evening star

Using weekly chart is because of avoiding daily chart so many gaps due to earning reports.