Earn over $450 in one trading week using Morning Star candlestick

Earn over $450 in one trading week using Morning Star candlestick
Earn over $450 in one trading week using Morning Star candlestick

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When people see the stars passing by in the sky, everyone prays and wishes for something to come true. But for traders who come across a candlestick pattern named after a star, the opportunity for profit has come. The daily affairs of life are closely associated with trading. It makes the diversity and abundance of transactions as an always fresh daily life.

In this article, I will guide you on how to trade when you encounter the Morning Star candlestick pattern. And during a trading week, how to effectively earn a profit of more than $450. If you want to know how the process goes, follow up on my share.

What is Morning Star candlestick pattern?

Morning Star is a candlestick pattern announcing a sharp reversal in the downtrend. And it is the most sought after pattern by traders. Because prices continue to rise as it appears. The optimistic psychology of investors presents in quite a detail through the pattern.

What is Morning Star candlestick pattern

Morning Star candlestick pattern consists of 3 candles:

– First candlestick: is a bearish candlestick with a long body.

– Second candlestick: is a small body or Doji candlestick (the color of the candle does not matter). It shows the market hesitation at that time.

– Third candlestick: is a bullish candlestick with a length of more than 50% of the first candle.

Meaning of the Morning Star candlestick pattern

The Morning Star candlestick pattern provides a reversal forecast with high accuracy. If prices are in a downtrend when the Morning Star pattern appears, traders should be cautious when opening DOWN orders. It indicates optimism about the future market.

Meaning of the Morning Star candlestick pattern

When combining the candlesticks of the Morning Star pattern, we get a special candlestick called Bullish Pin Bar. With the direction of the price from decreasing => hesitation => increasing, it creates a positive feeling about the upcoming market.

Morning Star candlestick pattern converted to Bullish Pin Bar

Most effective capital management method with Morning Star candlestick pattern

I have observed the frequency of its appearance on the Japanese candlestick chart for 1 month. There is enough evidence to ensure that the Morning Star pattern appears 3-5 times on each currency pair. It carries a reversal prediction from decrease to increase with a win rate of 65% – 75%. Therefore, we should use the classic capital management method which is the most reasonable.

With such a management method, it is not difficult to make your balance increase day by day. This combination is definitely suitable for traders who always minimize risks but still want to gain profits.

The classic capital management method

Why do we have to study the candlestick pattern detailedly? Is that necessary?

Shovels are for digging. Knives are for chopping meat. They all aim to maximize their effectiveness. A candlestick pattern is used as a trading signal. However, you must understand the nature and choose the correct timing to promote its full strength.

So understanding the characteristics and meaning is what professional traders need to do to win in the market.

Understand the problem and find effective solutions

Pieces of knowledge of finance, in general, and of candlestick patterns in the Japanese candlestick chart, in particular, are endless. And acquiring knowledge is never redundant. Be an intelligent person who is always receptive. Don’t be a fool who pretends to be smart.

Principles to keep in mind when using the Morning Star candlestick pattern

Trading principles

– Only open UP orders when encountering the Morning Star candlestick pattern.

– Do not open orders with an expiration time below 5 minutes.

– Do not trade 30 minutes before and after breaking news release.

– Can be applied to all types of assets.

– Never open many orders at once or consecutively.

Review and analyze opened orders in Olymp Trade from 25/05/2020 to 26/05/2020

High-accuracy Morning Star candlestick patterns rarely appear. So I only opened a few orders a day at where I found the highest winning rate.

Date 25/05/2020

Review on opened orders on 25/05/2020 in Olymp Trade

Reasons for opening the 1st order: The uptrend was stable, representing through consecutive bullish candles. The price suddenly dropped sharply. But when it hit the support zone, it indecisively created a Doji candlestick. After that, it formed a Morning Star candlestick pattern at the support zone in the uptrend. As predicted, the price would likely continue to rise when the Morning Star candlestick pattern was confirmed.

Opened an UP order when the Morning Star candlestick pattern was available. The results were as expected when the price increased right after that. I received a profit of 70% of the investment.

Review on opened orders on 25/05/2020 in Olymp Trade

Reasons for opening the 2nd order: The uptrend then switched to a sideways trend. A Morning Star candlestick pattern appeared at the previous support zone. Prices might increase sharply in the near future when the bullish pattern was available.

Opened an UP order when the Morning Star candlestick pattern was available. The results were as expected when the price increased right after that. I received a profit of 82% of the investment.

Date 26/05/2020

Review on opened orders on 26/05/2020 in Olymp Trade

Reasons for opening the 1st order: The Morning Star candlestick pattern appeared at the end of a downtrend. This was a standard order using the Morning Star candlestick pattern.

Opened an UP order when the Morning Star candlestick pattern was available. The results were as expected when the price continued to increase after that. I received a profit of 70% of the investment.

Review on opened orders on 26/05/2020 in Olymp Trade

Why didn’t we open the previous order when the Morning Star candlestick pattern appeared in a downtrend?

Because: The bullish force in the third candle did not pass over 50% of the first candlestick body. It proved that the bullish force was not strong enough. The upper tail was also quite long. These conditions were not enough for opening an order.

Reasons for opening the 2nd order: The Morning Star candlestick pattern appeared when the downtrend got exhausted. At this point, there were enough basic conditions to open an UP order.

Opened an UP order when the Morning Star candlestick pattern was available. The results were as expected. The price rebounded when the bearish momentum got weakened. I received a profit of 82% of the investment.

Review on opened orders on 26/05/2020 in Olymp Trade

Reasons for opening the 3rd order: The main trend was bullish. Prices temporarily recovered to form a Morning Star pattern. As soon as the pattern was available, the bullish momentum would continue strongly. So I expected the next candle to be bullish.

Opened an UP order when the Morning Star candlestick pattern was available but lost.

Date 29/05/2020

Review on opened orders on 29/05/2020 in Olymp Trade

Reasons for opening the 1st order: A Morning Star candlestick pattern appeared at the end of the downtrend in the previous support zone. The third candle showed a strong bullish force that cleared the previous bearish momentum, so the price remained uptrend.

Opened an UP order when the Morning Star candlestick pattern was available. The results were as expected when the price remained uptrend. I received a profit of 70% of the investment.

The bottom line

For those who trade with technical indicators, they think that patterns are really silly. There is no basis, statistics on the market to make effective decisions. However, the Morning Star candlestick pattern shows the psychology of the crowd most clearly. No matter who you are, no matter how high your win rate is, if you choose the wrong timing, you will still lose.

Why are so many different religions which spread so widely and get well-received? That’s because when they join a religion, they all have faith in the development that directs themselves to the best. It is the same with trading. When a trader believes and uses a trading strategy developed by them, they also aim for a system with a high win rate and they will be loyal to it. Trust is what you need to have with your trading strategy. Do not let the initial failure abandon the long-term development of your strategy

Build your own invincible trading system. Experience it on a demo account until the statistics are satisfied then you can start making real money. The trading strategy combination of the Morning Star candlestick pattern with the Classic capital management method is also worth a try.

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Earn over $450 in one trading week using Morning Star candlestick
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