ETHUSD 15M SHOOTING STAR CANDLE TRADING STRATEGY

Shooting Star Candle Strategy
The shooting star candle strategy is a very simple but very effective methodology to trade the financial markets. You can trade stocks, Forex, currencies, commodities, futures and even cryptocurrencies across various time frames.
The kinds of trade setup we’re going to propose through this reversal trading strategy have an astonishing high rate of success. However, the only downside is that they will only show up on your Forex candlestick chart once in a while.
Let’s get started and get our feet wet.
Step #1: Attach the Chaikin Money Flow Indicator on your Preferred Time Frame
Start first by preparing your charts ready for the battle. Simply attach the Chaikin Money Flow indicator on your favorite time frame. This is the only additional technical tool we’re going to use to confirm the validity of the bearish shooting star pattern.
Using the CMF indicator we accomplish one major thing.
The validity of the bearish shooting star will be confirmed or invalidate instantly as soon as the bearish inverted hammer develops on our Bitcoin candlestick chart. This means that the price won’t move any further from the ideal entry price.
Step #2: The Shooting Star Candle should come after a strong bullish trend
The location or in other words, where the shooting star candlestick develops matters a lot.
This whole ingredient is what makes the bearish shooting star candle performs with such a high degree of accuracy. We need a strong uptrend that has two important features:
The first part of the trend is a slow and steady move to the upside
The last part of the uptrend, prior to the shooting star candle, needs to be more volatile.
Basically, we’re looking for a full-blown market top where the bulls are exhausted and reach a climax point.
Step #3: The CMF indicator must be below the 0 line once the bearish shooting star candle develops
The Chaikin Money Flow is a great tool to read and measure institutional accumulation-distribution activity in any market. Basically, a CMF reading below the zero line shows that the sellers have the upper hand and they took control of the market.
Notice that the bearish shooting star spotted satisfies all the requirements of a bearish inverted hammer. The shadows are at least two times longer than the body; small body; and very little lower shadow. This candle would have been more powerful if the closing price is below the opening price.
But it’s still a good pattern to trade due to all the other features.
Now, it’s time to highlight how to find the right entry point for bearish shooting star candlestick.
Step #4: Sell once we break the low of the Shooting Star Candle
Simply, place a limit sell order below the low of the shooting star. Nothing complicated about our entry strategy. It’s in line with the textbook rule.
Step #5: Hide SL above the high of the Shooting Star Candle.
Simply hide your protective SL above the high of the shooting star pattern. You can add a buffer of a few pips if you wish to protect against possible false breakouts.
The full-blown top creates the necessary space where the bears would find no level of support to stop the drop. The last stage of a trend has been always more volatile. And, when combined with the reversal shooting star pattern, it makes for a killer trading strategy.
Step 6 TP when we get inside the slow part of the prevailing trend.