Shooting Star Forex Strategy

The Shooting Star forex strategy is made up of one reversal candlestick pattern and one exponential moving average for trend direction. This is a great reversal strategy used to trade short-term rallies found in a bearish market. The shooting star pattern is made up of one candlestick with a small body and little or no lower wick.

Shooting Star Candlestick Setup

Shooting-Star

Chart Setup

Indicators: 125 Period Exponential Moving Average, Candlestick_Recognition_Master
Preferred time frame(s): 1 min and up
Trading sessions: London and US for timeframe’s lower than 30 min. No restriction on hourly timeframe’s and higher.
Preferred Currency pairs: any

Download

Download the Shooting Star Forex Strategy.

Example: EUR/USD Daily Chart

shooting-star-forex-strategy

The EUR/USD daily chart above shows two qualified sell signals in the bearish trend: EUR/USD below the 125 exponential moving average + shooting start candlestick (SS 2, SS 4) = qualified sell signal.

Trading Rules

Qualified Buy Signal:

No buy signals from the Shooting Star forex strategy.

Qualified Buy Signal:

  • Price trades below the 125 Period Exponential Moving Average (bearish)
  • Candlestick Recognition Master indicator paints SS 2,SS 3 or SS 4 symbol (shooting star candlestick)

==> Sell now. Place a stop-loss above the most recent swing high level (resistance) or any other level you feel more comfortable with.

Price Target: I suggest a risk-to-reward of at least 2, which means you are only risking one dollar for every two dollars of profit potential, or any other profit taking method you feel more comfortable with.

Strategy tip: Turn off all Candlestick Recognition Master indicator alerts (set to false) except the SS 2,3,4 candlestick patterns.

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