The Shooting Star Candlestick Pattern

Image
 ### 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. ...
Post a Comment

Puria Method Indicative Strategy

Puria Method Indicative Strategy

Trader level (Experienced)

Type of strategy (Trend)

Timeframe (5-300 m)

Assets to trade (Currency pairs, Indices, Cryptocurrency)


The “Puria Method” trading system has existed for a very long time. Many exchange traders choose it for its simplicity and efficiency. If you have not heard of it or have never put it into practice, now is the time! Let's see how it works.

Step 1: Indicator setup

Plot MACD with these settings:
• Fast period 15;
• Signal period 1
• Slow period 26;

Puria Method Indicative Strategy_en1.png

Plot the 1st Moving Average with these settings:
• Period 75
• Type Weighted;
• Red color.
Leave the remaining settings unchanged.

Puria Method Indicative Strategy_en2.png

Plot the 2nd Moving Average with these settings:
• Period 85
• Type Weighted;
• Purple color.
Do not modify the remaining settings.

Puria Method Indicative Strategy_en3.png

The key principle of the Puria Method is follow the trend.
2 Moving Averages will help you determine the trend, and MACD (the Moving Average Convergence-Divergence) will help you spot the incipient wave of an up- or downtrend.

Step 2. Choose the time frame and expiration of your trades

It’s best to choose a short time frame, or you'll have to wait a long time for signals.

  • Expiration starts with 5 candles of the trading TF. I.e. it will be 1+ minute for 5s; and 10+ minutes for 1M.
  • And don't forget about risk management! Do not use more than 3% of the funds in your trading account for a trade!

Step 3: Make trades

Trade UP when the following happens:

  • The MACD line crosses the zero level up. Usually this is a preliminary signal, so, instead of making a trade on it right away, wait for signals of other indicators.
  • The price crosses both Moving Averages up.
  • Moving Averages cross UP and are below the price (candlesticks)
    This is the main signal;

Puria Method Indicative Strategy_en4.png

Trade DOWN when the following happens:

  • The MACD line crosses the zero level down. This is also a preliminary signal, so wait for confirmation by other indicators.
  • The price crosses both Moving Averages down.
  • Moving Averages cross DOWN and are above the price (candlesticks)
    This is the main signal to trade DOWN;

Puria Method Indicative Strategy_en5.png

Comments

Post a Comment

Popular posts from this blog

How to Use the Fibonacci Indicator in Trading

Image
 ## How to Use the Fibonacci Indicator in Trading The Fibonacci indicator is a popular technical analysis tool used by traders to identify potential reversal levels and forecast price movements in financial markets. Based on the Fibonacci sequence, this tool helps traders determine support and resistance levels. Here’s a comprehensive guide on how to use the Fibonacci indicator effectively in your trading strategy. ### Understanding the Fibonacci Sequence The Fibonacci sequence is a series of numbers where each number is the sum of the two preceding ones, usually starting with 0 and 1. The sequence looks like this: 0, 1, 1, 2, 3, 5, 8, 13, 21, and so on. In trading, the key Fibonacci ratios are derived from this sequence, notably 23.6%, 38.2%, 50%, 61.8%, and 100%. ### Fibonacci Retracement Levels Fibonacci retracement levels are horizontal lines that indicate potential support and resistance levels. These levels are derived from the Fibonacci sequence and are used to predict the f...
Read more

Technical indicators

Image
  Technical indicators Trader level (Beginner) Type of strategy (Trend) Timeframe (60-300 m) Assets to trade (Any) Technical Indicators  are tools for analyzing the dynamics of asset price movement, building indicator trading systems, and receiving trading signals for making trades. Moving Average, МА Moving Average, МА  — the average asset price over a certain period. The user sets that period in the settings. When using the Moving Average indicator on the quote chart (candlestick chart), the trader can more accurately and clearly determine the general direction of asset price movement. This helps the trader make the right decision when making their forecast about the direction of the trade at that moment and for the near future. The price chart also shows movement UP, but less clearly The indicator's general direction shows movement UP Moving Average indicator settings: The longer the indicator's period is, the more candles are used to calculate the average price. ...
Read more

The "Night channel" trading strategy

Image
The "Night channel" trading strategy Trader level (Beginner) Type of strategy (Flat) Timeframe (60-300 m) Assets to trade (Currency pairs) When is the best time to trade—day or night? Have you learned how to identify trends, and manage your capital well, and do you have the skills to instantly react to changing market conditions? Then day trading is precisely what you need. But if you prefer to trade stress-free on a calm market, you should consider the potential of night trading. You might be able to earn even more and do it more easily at night! What do we get from night trading? At night, asset markets are in a sideways trend with little amplitude. So, with the right approach, we get the following: • an almost 100% predictable market; • slow movement of quotes, which will allow you to make trading decisions without haste or stress; Thus, our night-time trading becomes much less risky, and often more profitable. How can we trade profitably at night? Now let's look at th...
Read more