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Morning and evening star - FOREX scalping strategy

These two candle formations have made a lot of traders profitable since the beginning of chart trading. Morning and evening stars are able to immediately provide a lot of information regarding the situation in the market. This reversal formation can immediately tell us:

  • Price development was interfered by strong support/resistance.

  • Tight trading range was created in lower timeframes (second narrow candle).

  • Breakout of the range was against the direction of previous price development, resulting in price bouncing from S/R (last signal candle).

For the best results, trade with professional ECN/STP broker with MT4. If you can't trade with profit. Automatically copy the traders that are already profitable.

However, this simple forex formation has one secret to it. You can't get greedy. Therefore, honest 50/50 approach is used.

Forex strategy rules

Buy:

We identify Morning star formation.

Bearish candle followed by extremely narrow (almost like doji) candle. Third candle of the formation is bullish, closing above the open of first bearish candle.

We enter long on 3. Candle close.

Placing stop loss 1 pip below the low of the morning star formation.

Take profit: distance between entry and stop loss will be used as profit target.

Sell:

We identify Evening star formation.

Bullish candle followed by extremely narrow (almost like doji) candle. Third candle of the formation is bearish, closing below the open of first bullish candle.

We enter short on 3. Candle close.

Placing stop loss 1 pip above the high of the evening star formation.

Take profit: distance between entry and stop loss will be applied as profit target.

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THEFOREXKINGS

“Trading FOREX since 2006. Full time trader and web developer since 2013. My two biggest hobbies are trading and web development. In TheForexKings I managed to connect both of them. Even after 12 years of trading I still have the same passion for the market as at the beginning. The aspect I enjoy the most : development and testing of new ideas.” 

 

Only in 2016 - 2017 we have created more than 400 forex strategies. During this period we have also developed and published +200 MT4 Expert advisors based on those strategies. We are dedicated to provide you with viable and complete trading systems that have thrived in extensive historical testing. We want to give you complete and transparent trading solutions, that once mastered ,will set you financially free. We want to give you a fighting and winning chance in the market. ” 

—  Marian, Proprietor of TheForexkings.com

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