The
Shooting Star is a bearish reversal candlestick pattern which is formed by a
candlestick with a small or non-existing real body and a long upper shadow. The
longer the upper shadow; the higher the probabilities of seeing a change in
direction to the downside. The 200 period Exponential Moving Average is very
reliable as a support or resistance level, especially on the higher time frames
like the Daily chart below of the EUR/USD. When a Shooting Star is formed around
the 200 EMA, its implications as a bearish reversal pattern are even higher and
there is a good probability that the price has found a strong resistance zone.
Therefore, we should pay attention to the visits that price does to the 200 Day
EMA and if a Shooting Star is formed around this moving average the chances of
a bounce to the downside are really high.
Good point, I will keep it in mind.
ReplyDeleteGood point. I'll keep a close eye on it.
ReplyDeleteVery useful information! Thanks.
ReplyDeleteInformative post, thank you.
ReplyDeleteGreat review of trade. Two important occurrences.
ReplyDeleteGood analysis.
ReplyDeletegood point and great analysis
ReplyDeleteVery nice!
ReplyDeleteWell spot, let's keep eye on this pair.
ReplyDelete