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Daily Trading Opportunity: Forming a Shooting Star in the price

Forming a Shooting Star pattern in the price is one of the most successful forecasting patterns for anticipating price decrease. 4CastMachine software studies and discovers forming Shooting Star pattern in the price in all charts. As a result, we can rapidly and easily pay attention to just the charts in which an important decrease is occurring and where a very good trading opportunity has been set.

Negative numbers in Hammer/Shooting column show a Shooting Star forming. Strengths of Shooting Stars are between zero to around -100: the closer number to -100 the greater strength. As the strength of each pattern is directly related to the probability of its success, it is better to collect the ones which have more strength.

 

A good trading opportunity: Forming a Shooting Star pattern

By forming a Shooting Star candle stick pattern in the Daily Charts, the probability of price decreasing more – tomorrow and after that - is very high, so we can enter the market by selling trades.

Forming Shooting Star on GBPAUD

Example:

Considering the front image, 4CastMachine shows a strong Shooting Star for GBP/AUD pair on 2014.01.24 forming.

Strength of Shooting Star is -51.

 

Forming Shooting Star on GBPAUD Performance

Performance of Sell trade:

As seen in the front image; the selling trade produced more than 800 pips profit.

 

In many cases, however, great decreases happen after forming a Shooting Star pattern as the sign of falling, so it is better to consider other technical reasons to support the guess of price falling and then think about making a trade. If a Shooting Star pattern is accompanied with a downtrend or it is in a resistance area, there will be a very good trading chance.

A very good trading opportunity: Forming a Shooting Star pattern in a downtrend

Formation of a new Shooting Star candle stick pattern in a downtrend shows that a new falling wave is starting and downtrend is resuming. So, a Shooting Star pattern in a downtrend is a very successful trading opportunity.

Forming Shooting Star in Downtrend on USDCHF

Example:

Considering the front image, 4CastMachine shows a downtrend and a strong Shooting Star pattern for USD/CHF pair on 2012.09.05.

Strength of Downtrend is -20.

Strength of Shooting Star is -41.

 

Forming Shooting Star in Downtrend on USDCHF Performance

Performance of Sell trade:

As seen in the front image; the selling trade produced more than 300 pips profit.

 

A very good trading opportunity: Forming a Shooting Star pattern in a resistance area

The most important technical factor which prevents the price from increasing more and causes its falling to resume, is a resistance area. If a Shooting Star formed after price bounced from resistance area, selling trades have a high probability of success.

Forming Shooting Star in Resistance zone on GBPUSD

Example:

Considering the front image, 4CastMachine shows a strong Shooting Star pattern after price bounced from 1.6270 resistance level for GBP/USD pair on 2013.01.02.

Strength of Shooting Star is -55.

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Also, you can see there is a Peak at 1.6305 at the ending of resistance area.

 

Forming Shooting Star in Resistance zone on GBPUSD Performance

Performance of Sell trade:

As seen in the front image, the selling trade produced more than 1300 pips profit.