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Walmart (WMT) Stock Drops Over 6%Walmart (WMT) Stock Drops Over 6% As shown in the Walmart (WMT) stock chart, trading on 20th February closed at $97.26, whereas the previous day, the stock was trading around $103. The decline of over 6% marks the largest drop in Walmart (WMT) stock price in 15 months. Why Did Walmart (WMT) Stock Drop? The bearish momentum emerged after Walmart’s earnings report, which was actually quite strong, as: → Sales growth reached 5.2%; → The company exceeded analysts' expectations (earnings per share were 2% higher than forecasts); → Walmart announced a 13% dividend increase. However, WMT stock fell because the retail giant released a profit forecast for 2025 that came in below market expectations. This was attributed to uncertain consumer behaviour and geopolitical conditions. Additionally, investors may have been dissatisfied with increased executive compensation. Walmart (WMT) Stock Technical Analysis The chart shows that after the decline, the price is consolidating near support levels formed by: → The lower boundary of the ascending channel; → Former resistance around $96. The situation resembles November 2023, when the market also reacted negatively to an earnings report. However, WMT stock later recovered, and a similar scenario could unfold in 2025. Analytical Walmart (WMT) Stock Price Forecasts Analysts remain optimistic. According to Yahoo Finance: → The average 12-month price target for WMT is $107.25; → Of the 42 analysts surveyed, 38 recommend buying WMT stock. Trade on TradingView with FXOpen. Consider opening an account and access over 700 markets with tight spreads from 0.0 pips and low commissions from $1.50 per lot. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
NYSE:WMT
by FXOpen
1
Taiwan Semiconductor Manufacturing Company (TSMC)-Target of $287Sustained Buying Hype with a Long-Term Target of $287 Taiwan Semiconductor Manufacturing Company Limited (TSMC) remains in a strong buying hype zone, driven by industry demand, AI advancements, and global semiconductor expansion. The stock has shown exceptional growth momentum, with projections pointing toward a long-term price target of $287 by July–August 2025. This would represent a 240% price extension from its $85 base level, confirming a sustained uptrend as investor confidence in the semiconductor sector continues to rise. Bullish Outlook: Path to $287 by Mid-2025 Current Market Hype is supporting aggressive accumulation, keeping TSMC on track toward its projected price target. The rally remains strong and uninterrupted, suggesting a clear uptrend continuation as long as broader market conditions stay favorable. Key Resistance Levels: $180, $225, and $260 before reaching the final extension target of $287. 2026: Major Pullback Phase Expected After reaching the $287 level, the market is expected to undergo a significant correction, leading to a price retracement in 2026. Price could drop to $110–$118, aligning with a natural market cycle cooldown after such a major extension. This pullback would serve as a healthy correction, allowing for reaccumulation before the next bullish phase. Conclusion: Strong Upside in 2025, Followed by a Deep Correction in 2026 Short-Term (2025 Target): $287 as part of the ongoing semiconductor boom. Post-Hype Correction (2026): Pullback to $110–$118, setting up a potential new accumulation zone. With TSMC remaining in a high-growth phase, the next 18 months will be crucial for maximizing gains before a major cooldown phase begins in 2026.
NYSE:TSMLong
by QuantumFusionWave
1
OMH or did we peak at $488? [4hr timeframe idea]OK so I'm going to update this idea over the coming days to give more explanation/hash out some more thoughts, but for now, here is where I'm at. Here is a bigger picture of the idea, showing previous peaks and how they cycled down (red arrows). Based on the bottom left example of a Wyckoff pattern found on BTC, we've got one more high before the real downfall cycle begins. If the top is in (which it could be based on the top left example and us hitting the resistance], the down cycle (red arrow) is already in motion. I'm leaning towards OMH as it stands, which if the white channel is anything to go by for now, we are looking at $600+ range. Both are valid ideas IMO, though let me know if you think otherwise/I've missed something :)
NASDAQ:TSLA
by ash4zeker
NFLX 2-21🔥 Market Overview: Trend: Bearish; price rejected at resistance and struggling to reclaim key levels. Key Levels: Resistance: $1,030, $1,045. Support: $1,020, $1,010. Indicators: MACD: Bearish crossover, indicating downside pressure. RSI: 55.05, neutral but losing momentum. Supertrend: Bearish, confirming short-term weakness. 🔥 Scalping Strategy: 🩸 1. Momentum Scalping Buy near: $1,020, targeting $1,030 (+1.0%). Sell near: $1,030, targeting $1,022 (-0.8%). Stop-loss: Below $1,015. 🩸 2. EMA Pullback Scalping Buy near: $1,020 (EMA 9), targeting $1,028 (+0.8%). Sell near: $1,030, targeting $1,020 (-1.0%). Stop-loss: Below $1,015. 🩸 3. Breakout Scalping If $1,030 breaks, enter long toward $1,045 (+1.5%). If $1,020 fails, short toward $1,010 (-1.0%). 🔥 Mid-Term Trend Forecast (1-3 Weeks): Holding above $1,020 could trigger a recovery toward $1,045. A breakdown below $1,010 confirms a deeper correction. Short-term weakness dominates unless bulls regain control. 🔥 News & Market Context: Netflix remains volatile, trading within a defined range. No major catalysts, leaving technicals to dictate movement. Broader market conditions favor defensive trading. 🔥 Decision: 🩸 Short-term: Scalping between $1,020–$1,030 is the best play. 🩸 Mid-term: Bearish unless $1,030 is reclaimed. 🩸 Ideal Play: Trade with caution—no strong momentum shift yet. 👑 Final Verdict: Markets punish hesitation—either execute or stay out. 🔥 LucanInvestor: "Only those who adapt to market shifts survive."
NASDAQ:NFLX
by LucanInvestor
AMZN 2-21🔥 Market Overview: Trend: Bearish; consistent lower highs and lower lows. Key Levels: Resistance: $225.50, $228.00. Support: $222.00, $219.50. Indicators: MACD: Weak bullish crossover, suggesting a potential short-term bounce. RSI: 57.61, neutral but approaching overbought conditions. Supertrend: Bearish, confirming downward pressure. 🔥 Scalping Strategy: 🩸 1. Momentum Scalping Buy near: $222.50, targeting $225.00 (+1.1%). Sell near: $225.50, targeting $223.50 (-0.9%). Stop-loss: Below $221.50. 🩸 2. EMA Pullback Scalping Buy near: $222.50 (EMA 9), targeting $224.50 (+0.9%). Sell near: $225.50, targeting $222.50 (-1.3%). Stop-loss: Below $221.00. 🩸 3. Breakout Scalping If $225.50 breaks, enter long toward $228.00 (+1.1%). If $222.00 fails, short toward $219.50 (-1.1%). 🔥 Mid-Term Trend Forecast (1-3 Weeks): If price holds above $222.00, expect a short-term bounce toward $228.00. If it breaks below $219.50, bearish continuation is likely. The downtrend remains intact until a higher low is formed. 🔥 News & Market Context: Amazon continues trading in a downtrend, showing signs of a potential short-term reversal. Broader market weakness is pressuring tech stocks. No major catalysts, meaning technical levels dominate trading action. 🔥 Decision: 🩸 Short-term: Scalping between $222–$225.50 is the best strategy. 🩸 Mid-term: Bearish unless $225.50 is reclaimed. 🩸 Ideal Play: Trade with tight stops; avoid chasing moves. 👑 Final Verdict: Weak hands panic. Strong hands execute with precision. 🔥 LucanInvestor: "Control risk, master the trade. Everything else is noise."
NASDAQ:AMZN
by LucanInvestor
Apple 2-21🔥 Market Overview: Trend: Bullish; consolidating near resistance. Key Levels: Resistance: $247.00, $250.00. Support: $244.50, $242.00. Indicators: MACD: Weak bullish momentum, signaling potential consolidation. RSI: 59.46, approaching overbought but still neutral. Supertrend: Bullish, maintaining higher lows. 🔥 Scalping Strategy: 🩸 1. Momentum Scalping Buy near: $244.50, targeting $247.00 (+1.0%). Sell near: $247.00, targeting $245.00 (-0.8%). Stop-loss: Below $243.50. 🩸 2. EMA Pullback Scalping Buy near: $244.50 (EMA 9), targeting $246.50 (+0.8%). Sell near: $247.00, targeting $244.50 (-1.0%). Stop-loss: Below $243.00. 🩸 3. Breakout Scalping If $247.00 breaks, enter long toward $250.00 (+1.2%). If $244.50 fails, short toward $242.00 (-1.0%). 🔥 Mid-Term Trend Forecast (1-3 Weeks): If price holds above $244.50, expect a run toward $250.00+. If it breaks below $242.00, downside risk increases. Market remains bullish unless momentum fades. 🔥 News & Market Context: MoffettNathanson raised AAPL's price target to $184, but still holds a "sell" rating. Apple remains resilient despite bearish analyst sentiment. Strong long-term fundamentals continue to support price. 🔥 Decision: 🩸 Short-term: Scalping between $244.50–$247.00 is ideal. 🩸 Mid-term: Bullish until $242.00 breaks. 🩸 Ideal Play: Buy on pullbacks, but be cautious of resistance. 👑 Final Verdict: Trends don’t move in a straight line—ride the wave, but don’t get caught in the undertow. 🔥 LucanInvestor: "Price action tells the truth. Noise is just a distraction."
NASDAQ:AAPL
by LucanInvestor
Meta 2-21🔥 Market Overview: Trend: Bearish; recent breakdown from highs, testing support. Key Levels: Resistance: $703.50, $710.00. Support: $692.00, $685.00. Indicators: MACD: Bearish momentum, indicating continued weakness. RSI: 39.68, nearing oversold conditions. Supertrend: Bearish, confirming downward pressure. 🔥 Scalping Strategy: 🩸 1. Momentum Scalping Buy near: $693.00, targeting $700.00 (+1.0%). Sell near: $703.50, targeting $695.00 (-1.2%). Stop-loss: Below $690.00. 🩸 2. EMA Pullback Scalping Buy near: $692.00 (EMA 9), targeting $699.00 (+1.0%). Sell near: $703.50, targeting $694.00 (-1.3%). Stop-loss: Below $689.00. 🩸 3. Breakout Scalping If $703.50 breaks, enter long toward $710.00 (+1.8%). If $692.00 fails, short toward $685.00 (-1.2%). 🔥 Mid-Term Trend Forecast (1-3 Weeks): If price holds above $692.00, a bounce to $710.00+ is possible. If it breaks below $685.00, expect further downside pressure. The trend remains weak unless a strong rebound occurs. 🔥 News & Market Context: Meta reduced stock-based compensation by 10%, signaling cost-cutting. Investors remain cautious despite record stock highs. Weakness across tech stocks adds pressure. 🔥 Decision: 🩸 Short-term: Scalping between $692–$703.50 is the best play. 🩸 Mid-term: Bearish until a reclaim of $703.50. 🩸 Ideal Play: Trade with tight stops as downward momentum persists. 👑 Final Verdict: Catching falling knives requires skill—trade smart or bleed out. 🔥 LucanInvestor: "Markets don’t care about emotions. Adapt or be eliminated."
NASDAQ:META
by LucanInvestor
Tesla 2-21🔥 Market Overview: Trend: Bearish; recent bounce but still below major resistance. Key Levels: Resistance: $362.00, $366.00. Support: $353.00, $347.00. Indicators: MACD: Weak bearish momentum, potential for a reversal if strength builds. RSI: 48.31, neutral with slight bullish divergence. Supertrend: Bearish, but a base is forming. 🔥 Scalping Strategy: 🩸 1. Momentum Scalping Buy near: $353.50, targeting $358.00 (+1.3%). Sell near: $362.00, targeting $355.00 (-1.9%). Stop-loss: Below $351.00. 🩸 2. EMA Pullback Scalping Buy near: $353.00 (EMA 9), targeting $360.00 (+2.0%). Sell near: $362.00, targeting $354.00 (-2.2%). Stop-loss: Below $350.00. 🩸 3. Breakout Scalping If $362.00 breaks, enter long toward $366.00 (+1.1%). If $353.00 fails, short toward $347.00 (-1.7%). 🔥 Mid-Term Trend Forecast (1-3 Weeks): If price reclaims $362.00, expect continuation toward $370+. If it fails to hold $353.00, a drop toward $347.00 is likely. The stock remains weak until a confirmed breakout. 🔥 News & Market Context: Tesla reported 2% revenue growth, missing expectations. Stock is still under pressure but showing resilience. Broader EV sector sentiment remains mixed. 🔥 Decision: 🩸 Short-term: Scalping within the $353–$362 range is optimal. 🩸 Mid-term: Tesla remains bearish until a breakout is confirmed. 🩸 Ideal Play: Range-bound trading until a decisive move occurs. 👑 Final Verdict: Weak stocks bounce before they break. Don’t chase—position with strategy. 🔥 LucanInvestor: "Discipline in execution separates traders from gamblers. Know the difference."
NASDAQ:TSLA
by LucanInvestor
NVIDIA 2-21🔥 Market Overview: Trend: Bullish, but facing consolidation near resistance. Key Levels: Resistance: $143.90, $145.00. Support: $139.50, $137.00. Indicators: MACD: Weak bullish momentum, indicating a possible slowdown. RSI: 57.29, approaching overbought conditions. Supertrend: Bullish, but a potential pullback is forming. 🔥 Scalping Strategy: 🩸 1. Momentum Scalping Buy near: $140.00, targeting $143.50 (+2.5%). Sell near: $143.90, targeting $140.50 (-2.4%). Stop-loss: Below $138.90. 🩸 2. EMA Pullback Scalping Buy near: $139.50 (EMA 9), targeting $142.50 (+2.1%). Sell near: $143.90, targeting $140.00 (-2.7%). Stop-loss: Below $138.50. 🩸 3. Breakout Scalping If $143.90 breaks, enter long toward $145.00 (+2.0%). If $139.50 fails, short toward $137.00 (-2.7%). 🔥 Mid-Term Trend Forecast (1-3 Weeks): If price holds above $139.50, the uptrend remains intact with a target of $145+. If it breaks below $137.00, expect a deeper correction. Consolidation is likely before the next big move. 🔥 News & Market Context: NVIDIA earnings report is scheduled for February 26, increasing market volatility. Options traders are pricing a 9.12% move, signaling high expectations. AI sector remains a driving force, keeping bullish sentiment strong. 🔥 Decision: 🩸 Short-term: Scalping the $139.50–$143.90 range is ideal. 🩸 Mid-term: Wait for earnings before taking larger positions. 🩸 Ideal Play: Trade range-bound setups while monitoring volatility. 👑 Final Verdict: Volatility is fuel for the skilled. Those who hesitate become liquidity—move with intent. 🔥 LucanInvestor: "In a market driven by momentum, only the decisive thrive. Indecision is an invisible loss."
NASDAQ:NVDA
by LucanInvestor
LUCD – 30-Min Long Trade Setup!📌 🔹 Asset: Lucid Diagnostics Inc. (LUCD) 🔹 Timeframe: 30-Min Chart 🔹 Setup Type: Symmetrical Triangle Breakout & Trendline Support Long Trade 📌 Trade Plan (Long Position) ✅ Entry Zone: Above $1.50 (Breakout Confirmation) ✅ Stop-Loss (SL): Below $1.36 (Break of Support & Trendline) 🎯 Take Profit Targets 📌 TP1: $1.65 (First Resistance Level) 📌 TP2: $1.86 (Final Target – Extended Bullish Move) 📊 Risk-Reward Ratio Calculation 📈 Risk (SL Distance): $1.50 - $1.36 = $0.14 risk per share 📈 Reward to TP1: $1.65 - $1.50 = $0.15 (1.07 R/R) 📈 Reward to TP2: $1.86 - $1.50 = $0.36 (2.57 R/R) 🔍 Technical Analysis & Strategy 📌 Symmetrical Triangle Breakout Setup: The price is approaching a breakout point, signaling a potential bullish continuation. 📌 Trendline & Support Bounce: Price is bouncing off the rising trendline (~$1.36), indicating strong support retention. 📌 Breakout Confirmation: A strong bullish candle above $1.50 with increasing volume would confirm the move. 📌 Momentum Shift Expected: If price holds above $1.50, a rally toward $1.65 (TP1) and $1.86 (TP2) is expected. 📊 Key Support & Resistance Levels 🟢 $1.36 – Strong Support / Stop-Loss Level 🟡 $1.50 – Entry / Breakout Level 🔴 $1.65 – First Resistance / TP1 🟢 $1.86 – Final Target / TP2 🚀 Trade Execution & Risk Management 📊 Volume Confirmation: Ensure strong buying volume above $1.50 before entering. 📈 Trailing Stop Strategy: Move SL to entry ($1.50) after TP1 ($1.65) is hit. 💰 Partial Profit Booking Strategy: ✔ Take 50% profits at $1.65, let the rest run to $1.86. ✔ Adjust Stop-Loss to Break-even ($1.50) after TP1 is reached. ⚠️ Fake Breakout Risk ❌ If price breaks below $1.36, it could indicate a bearish continuation—exit early. ❌ Wait for a strong candle close above $1.50 for confirmation before entering aggressively. 🚀 Final Thoughts ✔ Bullish Setup – Holding above $1.50 could lead to higher targets. ✔ Momentum Shift Possible – Watch for volume confirmation. ✔ Favorable Risk-Reward Ratio – 1:1.07 to TP1, 1:2.57 to TP2. 💡 Stick to the plan, manage risk, and trade smart! 🚀🏆 🔗 #StockTrading #LUCD #BreakoutTrade #TechnicalAnalysis #MarketTrends #ProfittoPath #DayTrading #MomentumStocks #SwingTrading #TradingView #LongTrade #TradeSmart #RiskManagement #StockBreakout #Investing #StockAlerts #ChartAnalysis 🚀📈
NASDAQ:LUCDLong
by ProfittoPath
IKT – 30-Min Long Trade Setup!📌 🔹 Asset: Inhibikase Therapeutics, Inc. (IKT) 🔹 Timeframe: 30-Min Chart 🔹 Setup Type: Trendline & Triangle Breakout Long Trade 📌 Trade Plan (Long Position) ✅ Entry Zone: Above $3.26 (Breakout Confirmation) ✅ Stop-Loss (SL): Below $3.07 (Break of Support & Trendline) 🎯 Take Profit Targets 📌 TP1: $3.44 (First Resistance Level) 📌 TP2: $3.69 (Final Target – Extended Bullish Move) 📊 Risk-Reward Ratio Calculation 📈 Risk (SL Distance): $3.26 - $3.07 = $0.19 risk per share 📈 Reward to TP1: $3.44 - $3.26 = $0.18 (0.95 R/R) 📈 Reward to TP2: $3.69 - $3.26 = $0.43 (2.26 R/R) 🔍 Technical Analysis & Strategy 📌 Triangle Breakout Setup: The price is breaking out from a symmetrical triangle, signaling potential upside momentum. 📌 Trendline & Support Bounce: Price is holding above the ascending trendline, confirming a bullish structure. 📌 Breakout Confirmation: A strong bullish candle above $3.26 with volume would validate the breakout. 📌 Momentum Shift Expected: A push above $3.26 could lead to a breakout rally toward $3.44 (TP1) and $3.69 (TP2). 📊 Key Support & Resistance Levels 🟢 $3.07 – Strong Support / Stop-Loss Level 🟡 $3.26 – Entry / Breakout Level 🔴 $3.44 – First Resistance / TP1 🟢 $3.69 – Final Target / TP2 🚀 Trade Execution & Risk Management 📊 Volume Confirmation: Ensure strong buying volume above $3.26 before entering. 📈 Trailing Stop Strategy: Move SL to entry ($3.26) after TP1 ($3.44) is hit. 💰 Partial Profit Booking Strategy: ✔ Take 50% profits at $3.44, let the rest run to $3.69. ✔ Adjust Stop-Loss to Break-even ($3.26) after TP1 is reached. ⚠️ Fake Breakout Risk ❌ If price breaks below $3.07, it could indicate a bearish continuation—exit early. ❌ Wait for a strong candle close above $3.26 for confirmation before entering aggressively. 🚀 Final Thoughts ✔ Bullish Setup – Holding above $3.26 could lead to higher targets. ✔ Momentum Shift Possible – Watch for volume confirmation. ✔ Favorable Risk-Reward Ratio – 1:0.95 to TP1, 1:2.26 to TP2. 💡 Stick to the plan, manage risk, and trade smart! 🚀🏆 🔗 #StockTrading #IKT #BreakoutTrade #TechnicalAnalysis #MarketTrends #ProfittoPath #DayTrading #MomentumStocks #SwingTrading #TradingView #LongTrade #TradeSmart #RiskManagement #StockBreakout #Investing #StockAlerts #ChartAnalysis 🚀📈
NASDAQ:IKTLong
by ProfittoPath
AVR – 30-Min Long Trade Setup!📌 🔹 Asset: Anteris Technologies Global Corp. (AVR) 🔹 Timeframe: 30-Min Chart 🔹 Setup Type: Symmetrical Triangle Breakout Long Trade 📌 Trade Plan (Long Position) ✅ Entry Zone: Above $8.23 (Breakout Confirmation) ✅ Stop-Loss (SL): Below $7.97 (Break of Support & Trendline) 🎯 Take Profit Targets 📌 TP1: $8.52 (First Resistance Level) 📌 TP2: $8.86 (Final Target – Extended Bullish Move) 📊 Risk-Reward Ratio Calculation 📈 Risk (SL Distance): $8.23 - $7.97 = $0.26 risk per share 📈 Reward to TP1: $8.52 - $8.23 = $0.29 (1.1 R/R) 📈 Reward to TP2: $8.86 - $8.23 = $0.63 (2.4 R/R) 🔍 Technical Analysis & Strategy 📌 Triangle Breakout Setup: The price is breaking out from a symmetrical triangle pattern, suggesting a bullish continuation. 📌 Support & Trendline Bounce: Price tested the rising trendline support (~$7.97) and bounced. 📌 Breakout Confirmation: A strong bullish candle above $8.23 with increasing volume would confirm the move. 📌 Momentum Shift Expected: If price holds above $8.23, a rally toward $8.52 (TP1) and $8.86 (TP2) is likely. 📊 Key Support & Resistance Levels 🟢 $7.97 – Strong Support / Stop-Loss Level 🟡 $8.23 – Entry / Breakout Level 🔴 $8.52 – First Resistance / TP1 🟢 $8.86 – Final Target / TP2 🚀 Trade Execution & Risk Management 📊 Volume Confirmation: Ensure strong buying volume above $8.23 before entering. 📈 Trailing Stop Strategy: Move SL to entry ($8.23) after TP1 ($8.52) is hit. 💰 Partial Profit Booking Strategy: ✔ Take 50% profits at $8.52, let the rest run to $8.86. ✔ Adjust Stop-Loss to Break-even ($8.23) after TP1 is reached. ⚠️ Fake Breakout Risk ❌ If price breaks below $7.97, it could indicate a bearish continuation—exit early. ❌ Wait for a strong candle close above $8.23 for confirmation before entering aggressively. 🚀 Final Thoughts ✔ Bullish Setup – Holding above $8.23 could lead to higher targets. ✔ Momentum Shift Possible – Watch for volume confirmation. ✔ Favorable Risk-Reward Ratio – 1:1.1 to TP1, 1:2.4 to TP2. 💡 Stick to the plan, manage risk, and trade smart! 🚀🏆 🔗 #StockTrading #AVR #BreakoutTrade #TechnicalAnalysis #MarketTrends #ProfittoPath #DayTrading #MomentumStocks #SwingTrading #TradingView #LongTrade #TradeSmart #RiskManagement #StockBreakout #Investing #StockAlerts #ChartAnalysis 🚀📈
NASDAQ:AVRLong
by ProfittoPath
Shooting Star Pattern: Meaning and Trading RulesShooting Star Pattern: Meaning and Trading Rules In the fast-paced world of trading, recognising key chart patterns is crucial for informed decision-making. One pattern that traders often look for is the shooting star trading pattern. This article will delve into what a shooting star pattern is, how to spot it on a chart, its associated trading strategies, and its distinctions from similar patterns. What Is a Shooting Star? A shooting star in trading is a bearish candlestick pattern that can signify a potential reversal of an uptrend. It consists of a single candlestick with the following characteristics: - A small body that is located at the lower end of the candlestick. - A long upper shadow that is at least twice the length of the candle's body. - A short or nonexistent lower shadow. The appearance of the setup suggests that the price opened near its low and rallied significantly during the trading session but ultimately closed near its opening price. This pattern indicates sellers regained control after a brief period of bullishness. While the formation is considered more probable when it closes red, it’s possible to see a green shooting star. A green shooting star candlestick simply indicates that sellers weren’t able to push the price down quite as aggressively. How Can You Trade the Shooting Star? The shooting star trading strategy involves the following key points: - Entry: After identifying the candle in the strong uptrend, consider entering a short position. To validate the pattern, you may wait for the next one or two candles to close below the shooting star. - Take Profit: Although candlestick patterns don’t provide specific entry and exit points, you can use common technical analysis techniques. For example, you may set a take-profit level based on the support level, Fibonacci retracement level, or nearest swing lows. - Stop Loss: You may want to protect your position with a stop-loss order. This is usually placed above the high price of the shooting star. This helps potentially limit losses if the pattern doesn't lead to a reversal. Let's consider a live market example of a shooting star in the stock market to illustrate the concept. A trader analyses the Meta stock chart and spots a shooting star stock pattern after an extended uptrend. They wait for confirmation, i.e. for the next bar to close lower. Upon confirmation, they decide to enter a short trade, setting their take-profit target at a significant support level and placing a stop loss above the formation’s high. How Traders Confirm the Shooting Star Signals Confirming the shooting star pattern's reliability involves a multifaceted approach, adding robustness to your trading decisions. Traders look beyond the candlestick itself, integrating various technical analysis tools to validate signals. Key confirmation methods include: - Volume Analysis: A high trading volume accompanying the shooting star candlestick pattern can strengthen the signal, indicating that the reversal is supported by significant market participation. - Subsequent Candles: Observing the next few candles for bearish confirmation is essential. A strong bearish candle following the shooting star suggests that sellers are gaining momentum. - Technical Indicators: Indicators can offer confirmatory signals, particularly momentum indicators like the Relative Strength Index (RSI) and Stochastic Oscillator. A moving average crossover can also add confluence. - Support and Resistance Levels: The proximity of the shooting star to established resistance levels enhances its significance. A shooting star forming near a resistance zone often signals a strong reversal point. - Above Swing High/Low: A shooting star pattern that breaks into the area just above a key high or low before reversing can signal a stop hunt/liquidity grab. - Contextual Analysis: The broader market context, such as prevailing trends and economic news, can influence the pattern's effectiveness. Aligning the shooting star with broader market sentiment increases the pattern’s reliability. Shooting Star and Other Candlestick Formations Let's compare the shooting star with other patterns with which it is often confused. Shooting Star vs Inverted Hammer The shooting star and inverted hammer look similar – they have small bodies and long upper shadows. However, they differ in their implications. The former is a bearish reversal pattern found in uptrends, while the latter is a bullish reversal formation seen in downtrends. Shooting Star vs Evening Star Both formations signal an uptrend reversal; however, the shooting star is a single-candle setup, whereas the evening star consists of three candles, including a large bullish candle, a small-bodied candle, and a large bearish candle. Shooting Star vs Gravestone Doji The shooting star and gravestone doji are both bearish reversal patterns. The shooting star features a small body at the lower end of the candlestick with a long upper shadow, signifying a failed rally. In contrast, the gravestone doji has no or a tiny real body, as the open and close prices are identical or nearly identical, with a long upper shadow and no lower shadow. The gravestone doji suggests strong indecision in the market, with buyers initially driving prices up but ultimately failing to maintain that momentum, which often signals a sharp reversal. Shooting Star vs Hanging Man The shooting star and hanging man also share similarities but differ in appearance and market positioning. The shooting star is a bearish pattern occurring after an uptrend, indicating a potential reversal as bears managed to pull the price down at the end of a trading session. Conversely, the hanging man appears at the top of an uptrend as well but has a small body at the upper end and a long lower shadow, reflecting that sellers were able to push the price down significantly before buyers pulled it back up. The hanging man suggests that selling pressure is starting to outweigh buying interest. Advantages and Limitations This formation offers traders valuable insights, but it comes with its own set of advantages and limitations. Understanding these can help traders use the pattern more effectively within their strategies. Advantages - Early Reversal Signal: It provides an early indication of a potential trend reversal, allowing traders to prepare for or act on a change in market direction. - Simplicity: The pattern is straightforward to identify, even for less experienced traders, making it an accessible tool for technical analysis. - Versatility: It can be applied across various markets and timeframes, with traders often spotting the shooting star in forex, stock, and commodity markets as well as across both short-term and long-term charts. Limitations - False Signals: The pattern alone is not always reliable and can generate false signals, especially in volatile markets or when not used with other confirmation tools. - Lack of Precision: It does not provide exact entry or exit points, requiring traders to rely on additional indicators or analysis to determine these. - Dependency on Context: The effectiveness of the formation is highly dependent on the broader market context and trend strength, limiting its standalone use. Final Thoughts Understanding chart patterns like the shooting star is essential for making informed decisions in trading. Remember that while this formation can provide valuable insights, it is more effective in conjunction with other tools for signal confirmation. As a trader, staying informed about market developments and continuously honing your skills could be a key to effective trading in the dynamic trading environment. Open an FXOpen account today to trade in over 600 markets with tight spreads from 0.0 pips. FAQ Can Candlestick Patterns Be Time-Sensitive? Yes, candlestick patterns vary depending on the timeframe. A shooting star on a 1-minute chart provides short-term signals, while a shooting star on a daily chart may signal a longer-term reversal. However, the choice of timeframe goes hand in hand with your market strategy and goals. How to Improve Candlestick Pattern Recognition Skills? Improving your candlestick pattern recognition skills requires practice and study. You can analyse historical charts, use trading simulators, read educational materials like those at FXOpen, and engage with experienced traders to gain insights and practical experience. Why Are Candlestick Patterns Important in Trading? Candlesticks visually represent price action and help traders identify potential trend reversals, continuations, and key support and resistance levels. They are valuable tools for technical analysis. What Is the Meaning of a Shooting Star Pattern? The shooting star pattern is a bearish reversal candlestick that forms after an uptrend. It signals a potential shift in market sentiment, where buyers initially drive the price higher, but sellers take over, pushing the price back down near its opening level. Is a Shooting Star Candlestick Bullish? No, a bullish shooting star does not exist. It is a bearish pattern, indicating that an uptrend may be losing momentum and that a reversal to the downside could be imminent. A similar bullish formation is the inverted hammer. Is a Shooting Star a Doji? A shooting star is not a doji. While both patterns can signal reversals, a doji has nearly identical opening and closing prices with no significant body, reflecting indecision, whereas a shooting star has a small body with a long upper shadow, indicating a failed rally. How Can You Trade a Shooting Star Candle? Trading this candle involves looking for confirmation of the reversal, such as a bearish candle following the pattern. Traders often set stop-loss orders above the shooting star's high and target profit levels near key support zones or previous lows. Trade on TradingView with FXOpen. Consider opening an account and access over 700 markets with tight spreads from 0.0 pips and low commissions from $1.50 per lot. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
NASDAQ:METAEducation
by FXOpen
1
MSFT with Room to Run to UpsideI guess what I love about this one is the fact that right now MSFT isn't exactly getting all that much love, and this sleeper has room to run if it can get above it's 200 day SMA! This one has been open for a couple days and if we can get a VIX crush Friday tomorrow it may just be getting started! The signal was created by the King Trading Momentum Strategy combines the 5 EMA crossing above the 13 EMA, RSI strength, favorable momentum as measured by ADX plus evaluating recent volume changes and even something that measures breakout momentum called Beta for some equities! MSFT and over 100 equities are built into this script with optimal backtest take profits and stop losses and can be toggled on by simply checking a box (default they are turned off). I always enable Using Bar Magnifier and On Bar Close in Properties.
NASDAQ:MSFTLong
by KingTrading999