Two Important Indicators: Hammer & Star

 Inverted Hammer And Shooting Star

Hello There,

Today we will talk about two important indicators or say factors affecting the way you trade. The first one is 'inverted hammer' and the second one is 'shooting star'. 

Well, these are named a child's toys but we must not take them lightly. These will be the most contributing factors if you seriously take them. 

Well, let's have a look at both of them,

1. Inverted Hammer: 

When you see an inverted hammer type candle in the graph you are analyzing in, then it can be a sign of trend reversal. So wait for the next candle to be formed before you invest your amount. When the next candle after the inverted hammer makes its close above the hammer's high then it is a sign of strong bullish trade. As result, the market will be going upward and you can make a good profit.

You can choose the candle's duration according to you.

For Intraday: 10-15-30 minutes

Options:1-2-5 minutes

Stoploss: Hammer's low

Target: Next Trend Reversal Candle

2. Shooting Star: 

One interesting thing about this formation is that it is like the previous one. But as we come to function, it is totally different from the hammer's function. Whenever you see that shooting star thing in your graph, you should wait for a while and listen very calmly to what the next candle formation is saying. If the next candle's close is below the level of the star's low then it could be going to be a downfall of the graph. So, pick your decisions wisely. 

You must pay attention that Candle's duration should be chosen on your own. 

For Intraday: 10-15-30 minutes 

For options: 1-5 minutes

Stoploss: Shooting Star's High

Target: Next Trend Reversal Candle.

A Wise Note: Emotions do not have any place while trading. Be wise and use the important stuff only for trading like candlestick patterns, indicators and your own experience. Remember that you will not lose only earn, just when you do learn. 

Thank You,