Conditions of a Perfect Shooting Star:
. Body is short.
. The height of the candlestick (the difference between high and low price) is tall enough and it's more than the Daily ATR(264). The taller the Candlestick is, the stronger the Shooting Star .
. The upper shadow (also known as upper wick or tail is the distance between the high price and the close or open...
TAIL, This is a reversal of prior trend pattern that shows up as one candle reaching out well beyond normal price action. Sometimes referred to as a Hammer which is used to spot signs of a reversal indication.
For Example, 1 Tail at a value low and Psychologically, this can signal exhaustion in the selling mentality and a developing appetite for long exposure...
These two points are -ve for trade in short side.
Minor and weighted supports have existed.
The excess(f) might be performed as excess and price can move still to the channel.
Suppose to, this stock is entered into the bearish zone, it will not back 7605 above.
I leave this chart for educational purpose because I really didn't enter here but i definitely traded it in my demo acc.
Confluence 1: Formation of a perfect head and shoulder.
confluence 3: Retest with a decent bearish candle.
A h&s breakdown observed yesterday with big red candle in edelweiss fin stock where neckline was around 246 levels....with a head size of around 30-35 points which indicate downside possible target upto 227--220. one can look forward to this stock for selling opportunity near resistance levels.
Disclaimer :- this study is posted for education purpose only...not...
We generally talk about breakdown and breakout confirmations. I have tried to present what confirmations actually are and how they are traded.
Some traders use indicators for confirmations, but in this post i have discussed confirmations based on price action only.
Same strategy can be used for breakouts.
Notes on the chart.
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