The Shooting Star Candlestick Pattern

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 ### The Shooting Star Candlestick Pattern #### Description The Shooting Star is a bearish reversal candlestick pattern that typically appears at the top of an uptrend. It is characterized by a small real body near the lower end of the trading range, a long upper wick (shadow), and little or no lower wick. The long upper wick indicates that the market opened, rallied significantly, but then gave up most of the gains to close near the opening price. #### Characteristics - **Small Real Body**: Indicates minimal difference between the opening and closing prices. - **Long Upper Wick**: Reflects strong upward movement that was not sustained. - **Short or Absent Lower Wick**: Suggests limited lower price movement during the period. #### Significance The Shooting Star pattern signals that buyers initially drove prices higher, but sellers regained control, pushing prices back down. This shift in momentum from bullish to bearish suggests a potential reversal from an uptrend to a downtrend. ####
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Market convergence/divergence with the RSI: let's determine the beginning of correction and earn

Market convergence/divergence with the RSI: let's determine the beginning of correction and earn

Trader level (Experienced)

Type of strategy (Trend)

Timeframe (60-300 m)

Assets to trade (Any)


The RSI (Relative Strength Index) shows the strength of the trend and the likelihood of it reversing. You can use the RSI in any market conditions: an uptrend, downtrend, or flat.

And you can also find one of the strongest signals of correction or trend change on the RSI: market convergence/divergence. How do you do that?

Step 1: Configure the indicator

In the "Indicators" tab, select RSI and configure the following settings:
• Overbought 70
• Oversold 30
• Period 8

Step 2: Use the indicator to make a profit:

How to conclude trades UP

  1. We wait until the RSI drops below level 30 and forms 2 minimums there. And the 2nd should be above the first:

divergence with the RSI_en1.png

  1. In the "Tools" tab, select "Beam" and draw the beam from left to right directly through the minimums on the RSI indicator. We get an uptrend line.

  2. On the chart, we draw the beam through the corresponding minimums in the same way. It is also a trend, but... a downward one.

  3. When the upper beam is directed downwards and the lower beam is directed upwards, this is called convergence and it indicates a reversal UP.

divergence with the RSI_en2.png

  1. We conclude a trade UP for 1-5 minutes.

Important! If both beams are directed upwards, there is no convergence! We do not conclude a trade!

How to conclude trades DOWN

  1. We wait until the RSI rises above level 70 and forms 2 maximums there. And the 2nd should be below the first:

divergence with the RSI_en3.png

  1. In the "Tools" tab, select "Beam" and draw the beam from left to right directly through the maximums on the RSI indicator. We get a downward trend.
  2. On the chart, we draw the beam through the corresponding maximums. We get an upward trend.

divergence with the RSI_en4.png

  1. When the upper beam is directed upwards and the lower beam is directed downwards, this is called divergence and it indicates a reversal DOWN.

  2. We conclude a trade DOWN for 1-5 minutes.

Important! If both beams are directed downwards, there is no divergence! We do not conclude a trade!

P.S. With experience, you will be able to make more profitable trades, because you will learn to identify subtle at first glance market convergence/divergence, which usually indicates sharper, stronger, and more prolonged corrections and reversals.

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