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Hello, and welcome back to stock trading masterclass by wealthy education in this video, we'll take

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a look at how to trade the morning star and evening star patterns, so this is a three candlestick pattern.

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And essentially, what you're looking for is a candle, a smaller candle than another candle, so you

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want to see a couple of gaps.

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That would be the evening star and this would be the morning star.

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Now the evening star happens typically at the end of an up run and Morningstar meaning price is going

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to rise at the end of a pullback or a downtrend or something like that.

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Now, I hope by now you understand that if you have three candlesticks and you see something like this,

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you know, Wicks notwithstanding, I put a couple of weeks here just to make it look a little bit more.

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Like the charts would look.

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This should tell you something like, for example, if the price is falling or pulling back just a bit.

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Well, there was a gap here.

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So there was continued downward pressure, but the next day, because it does typically happen on the

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daily charts.

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There was a gap in the other direction, so this tells you that the selling has been repudiated and

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once you break above this three candlestick pattern, the theory is you should go much higher.

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Now you can put your stop behind this candlestick or this candlestick entirely up to you.

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In that sense, it's it's kind of traded like a little miniature head and shoulders.

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It's really a good way to think about it.

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And that would be the Morningstar because it's going to rise.

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The evening star, of course, is this one over here?

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Same idea.

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Small body is what you want, and the reason is because it suggests that a lot of the wherewithal of

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the previous direction has run out.

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So I haven't Morningstar right here on the Bargains group, you can see it's got a little bit of volume

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coming into it and of course, we have the.

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Support level there that had already been tested, I would say, like $58.

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So that's the first thing that you should notice as to why this may had kicked off a move higher.

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Furthermore, this is a sideways market, so you always want to check the stochastic oscillator in that

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scenario, and you can see that we did cross there.

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We did not get oversold, but we did cross.

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So that's one thing that you could have looked at.

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Your 50 day EMA slices right through the middle of it with your 200 day EMA underneath confirming that

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we are in fact in a relatively strong uptrend.

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And once we break above the top of this candlestick, this would have worked had you put your stop loss

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back here.

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Had you put your stop loss behind this candlestick, you may have gotten tagged right there, quite

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frankly.

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But since you had the 50 day EMA there, you have to feel somewhat confident in how that would have

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turned out.

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Now Twilio has.

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What you could call basically a double evening star.

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You could see a nice gap gap there, a gap there at an extreme high.

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So that's very interesting.

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And, you know, when you see these like double type.

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Chemistry patterns that really should catch her attention.

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We did pierce the top of the Bollinger Band on a high volume and then get lower on high volume.

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That in and of itself should give you a bit of a heads up as to something may not be quite right.

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We pulled back to the 50 day EMA, which is what you would expect as well.

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And then with the Bollinger Band doing that, there's a very good chance that the RSI had gotten yes,

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overbought.

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And in fact, we even ended up having a bit of divergence at previous resistance.

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So it all kind of tied in quite nicely there.

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So you have to look a little close, but you are still formed an evening star as well right there.

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Gap Gap.

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Now this was a large area of ground to cover, but clearly it worked out back down to the support level

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rather quickly.

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So you can see that it showed signs of exhaustion as well, if you will.

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Let's go ahead and put.

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I'm going to take a wild guess and say that we had broken the Bollinger Bands.

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Yes, before we came back, tested and failed, probably going to see something similar on the RSI.

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Yes, we got overbought.

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RSI kept dropping.

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Why the price kept rising.

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Now, I don't know that I would call that divergence, but it certainly is decoupling.

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So that, of course, is an area worth paying attention to.

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So with that, we have finished Module nine, which is triple candlestick patterns and have come to

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the conclusion of the course.