The morning star pattern is a bullish reversal pattern in candlestick charting. It typically consists of three candles: a long bearish candle, a short candle with a small body, and a long bullish candle. The pattern is a strong indication that a downtrend may be coming to an end and that a bullish reversal is likely to occur.
According to the note, a trader looking to take advantage of the morning star pattern should buy above the high of the bullish candle in the pattern. The target for the trade should be set at twice the distance between the entry point and the stop loss, which is placed below the low of the morning star pattern candle.
This approach to trading the morning star pattern provides a clear entry point, a defined stop loss, and a predetermined target, which can help traders manage their risk and maximize their potential profits. However, as with any trading strategy, it is important to do your own research and analysis before making any trades and to use proper risk management techniques to minimize potential losses.
Target: 44900
Stop Loss: 42560
According to the note, a trader looking to take advantage of the morning star pattern should buy above the high of the bullish candle in the pattern. The target for the trade should be set at twice the distance between the entry point and the stop loss, which is placed below the low of the morning star pattern candle.
This approach to trading the morning star pattern provides a clear entry point, a defined stop loss, and a predetermined target, which can help traders manage their risk and maximize their potential profits. However, as with any trading strategy, it is important to do your own research and analysis before making any trades and to use proper risk management techniques to minimize potential losses.
Target: 44900
Stop Loss: 42560
Comment:
Bought 43100 CE at 340