A morning star is a visual pattern made up of a red candle, a smaller green/red candle with a short body (spinning top/doji) and long wicks, and a third tall green candle. BULLISH PATTERN
Similarly the evening star consists of a green candle, followed by a doji/spinning top and third red candle. BEARISH PATTERN
Ideally there should be a gap area between 2nd smaller candle with the 1st and 3rd candle which acts as resistance/support. And the 3rd candle should pierce atleast 50% of the 1st candle.
Examples: -
1. Very clear morning star formed on 4th October 2021 which signalled a massive rally.
2. Evening star formed on 16 Nov 2021 led to a massive fall. Not as clear cut with no gaps between candles.
3. Evening star with a massive bearish candle on 15 Dec 2022 led to a big fall.
Do check out the charts by zooming as it may not be clear
So should a bearish trade be taken? At this moment it is a big no as from all parameters NIfty is bullish at the moment. But looking at FII positioning and massive downward movement in S&P at the end there is a possibility if Nifty today closes below 18k and pierces through 50% of the 15th Feb green candle to below 17950 there could be fall as it would be a false breakout evidenced by low volumes.
This is yet to be confirmed though and Nifty has strong supports at 17860 and 17720.
Happy Trading and Best of Luck!!
Disclaimer - This is not trade recommendation or advice. This is purely for educational purposes. Do your own research before entering into a trade.
Similarly the evening star consists of a green candle, followed by a doji/spinning top and third red candle. BEARISH PATTERN
Ideally there should be a gap area between 2nd smaller candle with the 1st and 3rd candle which acts as resistance/support. And the 3rd candle should pierce atleast 50% of the 1st candle.
Examples: -
1. Very clear morning star formed on 4th October 2021 which signalled a massive rally.
2. Evening star formed on 16 Nov 2021 led to a massive fall. Not as clear cut with no gaps between candles.
3. Evening star with a massive bearish candle on 15 Dec 2022 led to a big fall.
Do check out the charts by zooming as it may not be clear
So should a bearish trade be taken? At this moment it is a big no as from all parameters NIfty is bullish at the moment. But looking at FII positioning and massive downward movement in S&P at the end there is a possibility if Nifty today closes below 18k and pierces through 50% of the 15th Feb green candle to below 17950 there could be fall as it would be a false breakout evidenced by low volumes.
This is yet to be confirmed though and Nifty has strong supports at 17860 and 17720.
Happy Trading and Best of Luck!!
Disclaimer - This is not trade recommendation or advice. This is purely for educational purposes. Do your own research before entering into a trade.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.