Trading Strategy Using the Formations of Japanese Candles
The formation “shooting star” represents decreasing Japanese candlestick (colored in white). First it is necessary to have an increasing candle or a series of increasing candles as in Figure 1 . in order to create a shooting star. The shooting star’s shadow which is above it has to be twice and a half times bigger than actual body of the candlestick. After the formation has already been finished ( a series of rising candles, the last of which is lengthened) the shooting appears- it doesn’t matter what kind of candle we have. The formation of the shooting star is a bear signal that indicates a decrease of the price.
In the figure 1 we can see where exactly the price is situated after the appearance of “shooting star” formation. In case we are trading with binary option we can use it for options that continue several hours- for example if the signal is shown on the hourly chart you can use options with a expiry of at least 4 hours.
This Trading Strategy is provided by Dimitar Petkov
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