The shooting star tells us that the market opened at or near its low, then strongly rallied up and finally got rejected to come and close near the open price. In other words, that session's rally could not be sustained, giving rise to bearish sentiments.
Entry on Confirmation only.
Aggressive traders can enter when the following candle closes lower than the shooting star.
Conservative traders can wait for a pullback to get a better risk reward ratio.
Hanging Man tells that , the market opens at or near the highs, then sharply sells off, and then rallies to close at or near the highs. This implies once the market starts to sell off, it has become vulnerable to a fast break.
Entry on Confirmation only.
Aggressive traders can enter when the following candle closes lower than Hanging Man.
Conservative traders can wait for a pullback to get a better risk reward ratio.
The body of the candle can be green or red. Red body would be slightly more bearish.
These patterns are very reliable, but a confirmation is must before initiating a trade. In case they form at important resistance levels these patterns become even stronger. Targets should be twice the size of the candle (shooting star/hanging man), but we should not be rigid with the targets here.
Entry on Confirmation only.
Aggressive traders can enter when the following candle closes lower than the shooting star.
Conservative traders can wait for a pullback to get a better risk reward ratio.
Hanging Man tells that , the market opens at or near the highs, then sharply sells off, and then rallies to close at or near the highs. This implies once the market starts to sell off, it has become vulnerable to a fast break.
Entry on Confirmation only.
Aggressive traders can enter when the following candle closes lower than Hanging Man.
Conservative traders can wait for a pullback to get a better risk reward ratio.
The body of the candle can be green or red. Red body would be slightly more bearish.
These patterns are very reliable, but a confirmation is must before initiating a trade. In case they form at important resistance levels these patterns become even stronger. Targets should be twice the size of the candle (shooting star/hanging man), but we should not be rigid with the targets here.
