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Morning and Evening Star & Engulfing


Morning Star Candlestick

Morning Star Candlestick Chart

Morning Star Candlestick


Technical Analysis of Morning Star Pattern

Morning star is a three day bullish reversal pattern.

 

The first day is a long black candlestick.

 

The second day is a morning star that gaps away from the long black candlestick.

 

Third day is a long white candlestick that fills the gap.

 

The filling of the gap and closing of the white candlestick above the gap is a strong bullish Forex signal.

 

Traders should open a buy trade after market price closes above the gap formation of the morning star. This is the confirmation signal of a buy signal generated by this pattern.

 

 

Evening Star Candlestick

Opposite of the morning star

Evening Star Candlestick chart pattern

Evening Star Candlestick

 

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Technical Analysis of Evening Star Candlestick Pattern

 

Evening star is a three day bearish reversal pattern.

 

The first day is a long white candlestick.

 

The second day is the evening star that gaps away from the long white candle.

 

Third day is a long black candlestick that fills the gap.

 

The filling of the gap and closing of the black candlestick below the gap is a strong bearish Forex signal.

 

Traders should open a sell trade once the market closes below the gap formation of the evening star. This is the confirmation signal of a sell signal generated by this pattern.

 

 

Engulfing Pattern

Engulfing is a reversal candlestick pattern that can be bearish or bullish depending upon whether it appears at the end of a market downtrend or at the end of a market uptrend.

Engulfing Candlestick Pattern on Forex chart

Bullish and Bearish Engulfing Pattern

 

Technical Analysis of Bullish and Bearish Engulfing Patterns

The color of the first candlestick indicates the trend of the day.

 

The second candlestick should completely engulf the first candlestick and it should have the opposite color.

 

For Bullish Engulfing the color of the candlestick should be Blue

 

For Bearish Engulfing the color of the candlestick should be Red

Market Sentiment 2015:

Quantitative Easing(QE): This is when a Central Bank decides to start printing money to buy Bonds so as to stimulate Economic Growth.

ECB QE: On January 22 2015, ECB - Euro Zone Central Bank announced it was going to start (on March 2015) Quantitative Easing for Euro Zone so as to stimulate growth in the EU, devalue the EURO so that its EU exports become cheaper and also bring inflation up to around 2%.

What it Means: This means the value of the EURO is going to depreciate against all other currencies. (Not at once, but gradually)

How Long will the QE Last: From March 2015 to September 2016 - Traders are already starting to position themselves for this move even before it starts.

Market Outlook: Very Bearish for EURUSD, and EURJPY - Also for GBPUSD, GBPJPY, and AUDUSD (No Need For Technical Analysis - This is Risk Appetite -Risk Averse Speculation).

Do Not Be Left by This Once in a Lifetime Opportunity: Open an account and start selling Euros and position yourself early - ECB has got your back on this one - 1.1 Trillion Euros is What Has Been Set For This QE (€60 billion per month for 19 months). - Others are already profiting - Read the article How to Fast Track Account Opening and Open an account now.

Strategy: Sell the retracements and use 1 Hour and M15 Charts to look for best entry and exit points - Also checkout Money Management Rules.

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Technical Analysis Lessons - Lesson 38 to Lesson 44 Learning Sections
Go To Next Lesson: Lesson 45
 

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