Morning Star (Bullish)

FX:GBPUSD   British Pound / U.S. Dollar
436 8 7
Hello friends well what we have here is a morning star price pattern (If you need a candlestick pattern cheat-sheet, you can find one on google             and print it out.... Its what I do). Also, price has reached the lower area of the price channel it is slithering within. Hehe =D So I'm pretty comfortable saying I'm looking to enter long. I will paste a 1HR chart on this post to show the price point I'll be looking at for entry, roughly around the .618 / . 786 retracement . With stops slightly below the lows at 1.5325 (marked by the grey line).

  • If we reach target 1 stops will be moved to break even.
  • Long Entry targets are outlined and marked on the chart.
  • A daily close above the 9-Moving Average adds more confirmation / confidence towards the trade.
  • The 200-Moving Average has flat-lined confirming the price channel .

1HR Chart showing preferred long entry area around the .618 / .786 retracement:

Cheers to you all, and to another week of trading! =)
nice plan!
haha, cheat-sheet. Thats good ;-)
+1 Reply
Daniel.B P_Parker
Hehe yea I got a couple cheat-sheets, its impossible for me to remember some of the pattern names haha =D
Hey Daniel, Nice analysis. According to my rules for trading the morning star pattern the small candle must gap down and the last bigger green candle must gap up. Here we don't really have either of the gaps, this is the only problem I have with this setup. Could you clarify your rules on trading the morning star pattern? That would clear up the discrepancy of how to trade this pattern :)
+1 Reply
Daniel.B moneymaking
Hey whats up moneymaking! Good question man, for me as long as it doesn't break back below the .786 retracement then its good to go. Volume on the 1HR chart also adds a little more confirmation to the 3rd wide body candle in the pattern. In short, the retracement rule, and volume supporting the price action is about the only rules I use.
+1 Reply
moneymaking Daniel.B
Awesome, thank you for the clarification mate. All the Best :)
Daniel.B moneymaking
Sure thing man, all the best to you also! =)
Nice setup. Im looking for long entry too.
+1 Reply
Daniel.B Andyle
Thanks man, looks like a promising trade! Best of luck =)
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