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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Trading on the news: turning information into profit

 Trading on the news: turning information into profit

Trader level (Beginner)

Type of strategy (Universal)

Timeframe (60-300 m)

Assets to trade (Currency pairs, Indices, Cryptocurrency)


The strategy for trading on the news is quite interesting. The economic calendar publishes events that might affect an asset and based on the results of those events, a trade is concluded. However, there are a few subtleties that are worth paying attention to.

Knowing the time the statistics will be released, the trader can draw up a trading plan for UP/DOWN trades with assets that will be affected by this information.

For the trading on the news strategy, it is worth using information leads, data that quite often does not meet expectations. For example, data on the United States periodically show discrepancies with the opinions of analysts, which makes the price move UP or DOWN. It is the discrepancy in data that is the driver of price growth/decline. The trader makes their trade after the release of the macroeconomic figures. This option is good because you already know how the published data correlates with the forecasts and the previous values.

The trading on the news strategy is suitable for any asset, without exception. The calendar of events publishes statistics from different countries, and they do it daily.

Example of trading on the news

STEP 1

Select the “Economic calendar.” The calendar is updated in real-time.

Trading on the news_ turning information into profit_en1.png

STEP 2
Look at how much time there is before the news release and choose the most convenient time for our trade.

Trading on the news_ turning information into profit_en2.png

For example, let's take the first one: Retail Sales (MoM) (May)

STEP 3

We read the description of the indicator. Understanding this is necessary for further analysis and forecasting when making a trade.

Trading on the news_ turning information into profit_en3.png

STEP 4
We choose a currency pair to conclude the trade with. This displays the currency pairs whose prices may rise or fall due to the release of this economic news event. We know that at least one of these assets will work for us.

Trading on the news_ turning information into profit_en4.png

STEP 5

Let's look at the values in the “Previous (value)” and “Forecast” fields. Before the news release, the “Actual” area remains empty. These are the values that we consider when analyzing the news. It is the numbers displayed in these fields that the trader should pay attention to first of all.

Trading on the news_ turning information into profit_en5.png

STEP 6

Shortly before the news release, we select the most profitable asset (or more than one) of those that the news impacts to conclude the trade with.

Trading on the news_ turning information into profit_en6.png

STEP 7
We make our trade based on analysis (comparison and conclusions) of the data from the “Previous” and “Forecast” fields on the selected asset shortly before the news release or based on the data from the “Actual” field during or immediately after the news release.
In this example, the news was being "processed" for almost 10 minutes, allowing us to open successful trades on an uptrend:

Trading on the news_ turning information into profit_en7.png

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