Hello and welcome back to the complete scoop training course by well wealthy education.
In this video we'll take a look at morning star and evening star candlesticks.
So the Morningstar is a bullish pattern.
The evening star is a bearish pattern and the best way to describe it is dribbling out the bodies like
this.
The idea is that in this case, let's this would be a morningstar because it's going to rise.
You would get a gap lower for the second day because you need gaps and then you would need a gap for
the third day to turn things around and show signs of life.
If we can break above all three candlesticks, you put your stop loss on the other side and you let
it rip.
It's supposed to be a potentially a potential reversal.
Something like this is what you would want to see on an evening star.
So you would have negativity on this candlestick.
It can be either color up here and obviously it would have to be bullish.
Stop loss goes on the other side.
You short the break of the two other candlesticks and you let it rip.
Now, obviously.
You're going to have to use artistic license because we don't have that in 24 hour markets.
So this would be a morningstar after a pullback.
You don't have the long candlestick ahead of it, but it does tell you the same thing.
But at the same time, you can say, hey, look at this nice hammer here.
So you're going to run into a lot of that with these patterns.
But I want you to at least be aware of the fact that something like this exists.
And you can think of it in those terms.
So in this scenario, you would buy on a break above this, your stop loss would be down here and you
can see you took off on the daily chart and the next resistance barrier is right up there.
And there you go.
So let's take a look at some five minute charts here, for example, in Home Depot, because you don't
have the gap.
This candlestick here can be thought of as an evening star.
It also can be thought of as a shooting star.
So it's kind of six one half a dozen or the other.
Do you really care what you call it or do you want it to work?
And that's kind of my thought process here.
You would short it there, stop there.
Huge area, obviously right here is your next resistance barrier or support barrier.
Excuse me.
And you hit it and then lo and behold, you do the same thing down here.
And this is an actual.
Morningstar, you can see.
GABLER And then turned around to you buy on the entry there.
You stop less there.
Where do you think it's going?
Well, you would assume it's going to at least there.
So it's at least 1 to 1.
Or you could try to take out the tops so you can see how that plays out.
Over here in dollar yen again, you're going to have to use a little bit of an imagination.
Big run, higher little star.
Decent body.
You break down blood, your stop loss is here.
You go down here to the previous resistance, which should now be support on this evening star.
So again, like I said, you're you're looking for the spirit of the pattern, not necessarily the exact
perfect 100% setup, because like I said, you're not going to get it in a liquid market that never
closes.
You could call this a morning star you by the break of that, you've got to be looking for that area
there.
It takes a handful of candlesticks to get there.
With your stop loss, you're in pretty good shape.
So let's go over to crypto.
And.
Check out Tron Tethers.
Here is an evening star or shooting star.
Take your pick.
It's right at resistance.
You sell the break of that.
You're looking to come back to this previous support level, and that's exactly how it plays off.
So, again.
Don't worry about the perfection.
Pay attention to what the market's trying to whisper to you.
This is one of those subtle signs, because we don't have the massive gaps that you would have, like
on a daily stock chart, as it were.
So the next video, I'll run you through some trades and I'll show some indicators and technical bits
and pieces that could make the trade a little bit more comfortable for you.