It takes a little practice to master this art, but the results are almost like…
Pure Forex Trading Magic!
I’ve prepared a video below where I just opened up a chart and followed the EMA/MACD system & shared the interpretation. I didn’t cheat & look ahead. I simply called it as I saw it. I actually do this in real LIVE market conditions when I teach traders directly how you can trade everyday.
I didn’t lay out a bunch of complicated rules for you. I simply shared how to look at the signals that were given. If you watch this video a few times & then look at forex charts for even 30 minutes, you’ll start to see the power of this system!
Trend Following Magic Video
Watch this video now to see how you can use the EMA/MACD system to predict trend continuation & reversals. When you combine this with Forex Sailing, you’ll be nearly unstoppable. With all these tools, you’ll be like a Forex Ninja!
I recommend you watch this video a few times. I’ll also share this concept a few more times with you as well so it really sinks in. This isn’t your typical way to look at EMA & MACD, this is a really cool & powerful way to use basic forex tools.
Learn this & You’ll Kick ASS!
I’m sharing this for free on the blog so you can kick ass as a forex trader! Learn it. Master it. Use it. IT WORKS!!!
Posted on March 1st, 2010 by Rapid Forex4 Comments »
Now that you know the morning star candlestick pattern, it’s time to learn the evening star. The evening star is simply an “upside-down morning star.” If you can reverse the logic, you’ll immediately understand how an evening star works.
The partner of the morning star is the evening star, which forms at the end of an uptrend (it’s the top), potentially signaling a reversal into a downtrend.
An evening star formation, which includes three or more candles, is characterized by a larger bullish candle, followed by a small-bodied bullish or bearish candle (a spinning top or a doji), followed by a larger bearish candle.
In order to qualify as an evening star formation, the third bearish candle must close at 60% or more of the original bullish candle’s opening (counting the top of the middle candle as 0 and the opening price of the original bullish candle as 1).
The basic evening star consists of three candles and signals a reversal from an uptrend into a downtrend
As you can see in the image below, an evening star formation can consist of more than three candles.
A morning star may also form in more than three candles to signal the reversal o an uptrend
The defining characteristics are the initial larger bullish candle and a final larger bearish candle that closes at 60% or more of the initial bullish candle’s opening. In between those two candles can be a single doji or spinning top, or several.
Tip: You can confirm the evening star once the final bearish candle has formed.
If you identify an evening star and decide to trade it, sell at the opening of the candle that follows the evening star’s final bearish candle. Set your protective stop loss order at the last level of resistance (which will be the high of the evening star’s middle candle).
Trading evening stars can be particularly lucrative if you have a convergence (that is, the reversal implied by the evening star is further implied by a trendline or some other indicator).
A morning star candlestick formation forms at the end of a downtrend (it’s the bottom), potentially signaling a reversal into an uptrend.
A morning star formation, which includes three or more candles, is characterized by a larger bearish candle, followed by a small-bodied bullish or bearish candle (a spinning top or a doji), followed by a larger bullish candle.
The morning star formation is a trend reversal signal. Three candles are necessary for form a basic morning star formation.
In order to qualify as a morning star formation, the third bullish candle must close at or above 60% of the original bearish candle’s opening (counting the bottom of the middle candle as 0 and the opening price of the original bearish candle as 1).
As you can see in morning star picture below, a morning star formation can consist of more than three candles.
A morning star formation with more than three candles
The defining characteristics are the initial larger bearish candle and a final larger bullish candle that closes at or above 60% of the initial bearish candle’s opening. In between those two candles can be a single doji or spinning top, or several.
You can confirm the morning star once the final bullish candle has formed.
If you identify a morning star and decide to trade it, buy at the opening of the candle that follows the morning star’s final bullish candle. Set your protective stop loss order at the last level of support (which will be the low of the morning star’s middle candle).
Trading morning stars can be particularly lucrative if you have a convergence (that is, the reversal implied by the morning star is further implied by a trendline or some other indicator).
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