Home for all Chart Traders: This site will teach you how to trade Chart Patterns, via articles about trading, Money Management, Patterns, and more!

Candlestick Formation: Evening Star

The Evening Star is a strong reversal pattern that is composed of the Doji candlestick and two candles. It is the perfect reversal pattern. Its first candle is a full bullish candle, followed by a Doji that signals indecision, and the last candle signals the final reversal - full bearish candle.

Examples of the Evening Star in trading:

Double Bottom at USD\CHF | 30-minute chart


Great looking Double Bottom at the USD\CHF, 30-minutes chart. Also coincides with very strong support from the 4H timeframe - hitting support of an ascending channel. Its slope also empowers the trade and enforces long positions.

Candlestick Formation: Doji

The Doji is an indecision candlestick formation, which can transform into a Reversal formation if accompanied by confirmation candles.

Where To Place Stop Loss

The questions of where and how far should the stop loss be is an issue of major importance for beginners and advanced traders alike.

In this article we will give the basic methodology of placing stop loss when trading chart patterns.

Place Stop Loss in Logical Level
The main idea about Stop Loss is the following: Stop Loss should be in a place that if reached by price, it voids the logic upon the trade is based. If price reaches that level there is no reason of staying in the trade any longer. This is from theoretical point of view.

Syndicate content