Daily Trading Opportunity: Forming a Shooting Star in the price

Forming a Shooting Star candlestick pattern in price is one of the most successful patterns of forecasting the descend of prices. 4CastMachine software analyzes and discovers forming Shooting Star price pattern for all charts.
As a result, we can quickly 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 Star 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 candlestick pattern in Daily Charts, the probability of the price decreasing more – tomorrow and after that - is very high, so we can enter the market by selling trades.

Example:

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

The strength of Shooting Star is -51.

 

Performance of Sell trade:

As seen in the front image, sell trade produced more than 800 pips profit.

 

Although in many cases, after the formation of the Shooting Star pattern as the only sign of a downturn, great fall also occur, but it is better to have other technical reasons to reinforce the price fall guess 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 opportunity.

 

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

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

Example:

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

The strength of Downtrend is -20.

The strength of Shooting Star is -41.

 

Performance of Sell trade:

As seen in the front image, sell 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.

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.

The 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.

 

Performance of Sell trade:

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