Binary Trading
Binary Trading
1. Hammer Candle
Important Levels
Compare
Last
Candle
50% Strong Level
Marubozu Candle
Strong Level
NOTE: In any doji, the party making the wick can be strong if the
trend is towards the party making the wick.
* TREND
Uptrend Downtrend
LL
1. Common Levels
A. Horizontal Level
NOTE: There should be maximum touch points for the common level and there
should not be body break of any candle.
Common Level
B. Trendline Common Level
Gap Level
NOTE: The gap level is only in the candle of the same color
CLICK HERE TO WATCH THE VIDEO OF THE GAP & OVERLAP LEVEL
2. Overlap Levels
Overlap Level
NOTE: The Overlap level is only in the candle of the same color
Day #3
1. Engulfing Pattern
2. Piercing Line & Dark Cloud Cover
3. OutSide Bar & Inside Bar
NOTE: If the market is in an uptrend and if the market is
coming by creating HL, then the first target of the market
will be to break HH similarly, after creating the market LH
in a downtrend, its first target will be to break the LL.
NOTE: If a pattern is created on the top of the corrective wave and the
market is coming without retesting that pattern, then that corrective
wave can come only up to 50% of the impulsive wave or will reverse
before that. But if the market is coming after retesting the pattern,
then the market can reach the lower support and can also break the
support.
1. Engulfing Pattern
NOTE: This is a continuation pattern.
A. Bullish Engulfing
Power Of Level
( 50% )
( 75% )
B. Bearish Engulfing
Market Resistance Level
( 75% )
( 50% )
Power Of Level
Gap Engulfing
NOTE: Gap up and gap down should not be too much. and
candles should be healthy.
NOTE: We will consider Inside Bar & Outside Bar only when there
is momentum of at least three healthy candles after the
formation of this pattern, and in uptrend the closing of that
momentum should be below the low of the previous candle, and
in a downtrend, The closing of that momentum should be above
the high of the previous candle.
NOTE: Three Candle Rejection Pattern
Level
Day #4
Single Candlestick Level
1. Bullish Hammer Level
2. Bearish Hammer Level
3. Spinning Top Level
C
Single Candlestick Important Retest Level
O
Double Candlestick Important Level
Hammer
50% Level
C
O
Inverted Hammer
Hammer
Double Candlestick Important Level
Inverted Hammer
C
O Important Level
Important Level
C
O
O
C Important Level
Important Level
O
C
Day #5
Multiple Candlestick Level
1. Morning Star & Evening Star Level
2. Inside bar & Outside bar Level
NOTE: The 5-minute trend will be important for 1-minute trade.
Power Of Level :-
HH, HL, LH, LL Level
NOTE: gap up, gap down and overlap levels will be in between.
Level Importance
Level Importance
(3)
(1)
(2) (2)
(1)
NOTE: The 50% level of the green candle is to be taken only when
this candle is an averagely stronger candle than the previous 10
candles, but if the green candle is weak then its 50% level is not
to be taken.
NOTE: When the market comes back
from above, it can take a reversal
from these levels.
NOTE: The wick side of the middle candle should not be above the
body of both candles, only then this pattern will be valid.
Evening Star
50% Level
Morning Star
NOTE: The green 50% level is more important than the gap level
in this above chart because the gap level is formed on the left
side of the green candle and the level of the green candle is a
newer level than the gap level.
NOTE: If a candle does not reach the target in the first 30 seconds
of opening, then the candle will try to touch the target for sure in
the next 30 seconds, but if the candle has touched the target in
the first 30 seconds, then the candle may form the opposite. If a
candle has not been able to achieve the target the first time,
then it will try to achieve that target next time.
NOTE: The market never completes " V and FFLL " against the
trend (full feel last leg -FFLL ).
NOTE: If there is a gap down after a strong candle, then that gap
down is done by the opposite party because the party of the
strong candle does not need to gap down because the party of
the strong candle is already very strong.
Day #6
Chart Pattern Level
1. M - Pattern & W - Pattern
2. Head and Shoulder & Inverted Head and Shoulder
M Pattern
Common Level
B
Neckline Common Level
A( 1 )
A( 2 )
Level Importance
A( 2 )
A( 1 )
Neckline Common Level
B
Common Level
1. Head and Shoulder & Inverted Head and Shoulder
Head and Shoulder
Common Level
Common Level
W
NOTE: HH, HL, LH, LL, and the neckline level of the chart pattern
are a reversal level, the rest are continuation levels. Because
whenever the market breakouts or skips these levels, a reversal
candle appears.
Entry Candle
(C)
Level
(B)
50% Of Green Candle
Wick Level
Level
(B)
Entry is to be taken
below these levels
Entry
(A)
NOTE: The gap-up level should not be a reversal level (HH, HL, LH,
LL, Chart pattern neckline). The candle can reverse when the
gapup level is the reversal level.
NOTE: It is not necessary for the B-candle to be rejected from the
level.
Wick Level
Level
Entry Candle
Level
Entry Candle
Day #9
Two Candlestick Level Trading
1. Bullish Engulfing Trade
2. Bearish Engulfing Trade
3. Piercing Line Trade
4. Dark Cloud Cover Trade
(D)
Wick Level
50% Level
(C)
Trade Entry
Retest Level
50% Level
(A) ( B)
Level
NOTE: The entry candle ( D-candle ) should not be the last candle
of five minutes.
Pattern #2
Trade Candle
(E)
Wick Level
50% Level
50% Level
(A) ( B)
Level
NOTE: The closing of the D-candle should be above the high of the
wick of the B and C candles.
NOTE: (Pattern #1) If the C-candle does not retest in the uptrend
and the C-candle is a tailless candle that breaks the highs of all
previous candles, we can enter a trade here.
(C)
NOTE: If there is a gap from the
Retest Level retest level of the C-candle then
50% Level the next candle can retest. so
don't trade here
(A) ( B)
Wick Level
Gap Up
(C)
NOTE: Gap up below the level, do
Retest Level
not trade here.
50% Level
(A) ( B)
NOTE: Whenever a strong candle has a big wick, then that candle
is not to be considered a strong candle..
do not trade here
(D)
(C)
Retest Level
50% Level
(A) ( B)
NOTE: If the market does not meet the target in the direction of
the trend but completes the target in the opposite direction of
the trend, then there can be a trend change.
Pattern #1
Level
50% Level
Retest Level
(C)
50% Level
Wick Level
(D)
Trade candle
Pattern #2
Level
(A) (B)
Trade Entry
50% Level
Retest Level
(C) (D)
50% Level
Wick Level
(E)
Trade candle
Trade Candle
(C)
50% Level
(A) ( B) Level
NOTE: There should not be any resistance level near the entry
candle.
Level (A) ( B)
50% Level
(C)
Trade Candle
Day #10
Three Candlestick Level Trading
1. Morning Star Trade
2. Evening Star Trade
Trade Candle
Safety Entry
(E)
50% Level
Wick Level
(D)
Retest Level
50% Level
Wick Level
(A) (C)
(B)
NOTE: The trade candle should not be the last candle of five
minutes.
NOTE: The closing of the D-candle should be above the high of the
wick of the C-candle.
NOTE: For more safety, you can take the trade below the 50%
level of the D-candle or below the high of the wick of the C-
candle.
NOTE: The accuracy of this pattern comes up to 90-95%. For more
accuracy, you can trade at the beginning of the impulsive wave.
Pattern #2
Trade Candle
Safety Entry
(F)
(D) (E)
50% Level
Retest Level
50% Level
Wick Level
(A) (C)
(B)
NOTE: ( Pattern #2 ) For safety, the trade can be taken below the
50% level of the continuation candle ( E-candle ).
NOTE: If the continuation candle is of tail less then the trade can
also be a sureshot
NOTE: If ever a tailless candle comes into the market which
fulfills or engulfs the previous candle, then whenever a tailless
candle comes in the subsequent momentum, the market mostly
does continuation. And if the trend is with it then it mostly
becomes a sureshot. It is necessary to have the head of the
tailless candle.
Pattern #3
Trade Candle
Safety Entry
(F)
(D) (E)
50% Level
Retest Level
50% Level
Wick Level
(A) (C)
(B)
NOTE: If you look at pattern #3, there are two patterns being
formed, Morning Star and Engulfing, so you can trade according
to both patterns.
Trade Candle
Safety Entry
(F)
(D) (E)
50% Level
50% Level
Wick Level
(A) (C)
(B)
GapUp
(D) (E)
50% Level
Retest Level
candle, then gap-down buyers
have done this to break that
(A)
(B)
(C)
level. Here trade entry for safety
can be taken below 50% of E-
candle
Trade Candle
(G)
(D)
(E) (F) Retest Level
50% Level
(A) (C)
(B) Two Retracement Candles
NOTE: Retracement can happen from two candles but not from
three candles.
Trade Candle
Trade Candle
Common Level
when the common level of this
pattern is broken. If the
common level is not broken, the
market can move according to
the pattern.
(A)
(C) candle being a weak candle
Wick Level
(B)
breaks the high of the A-candle
then we can enter the trade
here.
Pattern #1
(B)
(A) (C) Wick Level
50% Level
Retest Level
50% Level
(E)
Safety Entry
Trade Candle
Pattern #2
(B)
(A) (C) Wick Level
50% Level
Retest Level
(D)
50% Level
(E)
Trade Candle
Pattern #3
(B)
(A) (C) Wick Level
50% Level
Retest Level
(D) 50% Level
(E)
Trade Candle
NOTE: When a candle does not have a head, the next candle is
likely to reverse. Even if it is a retracement candle of a strong
pattern. But if a candle has a big head and a small tail, then there
are more chances of continuation.
Day #10
Trend Level Trading
1. HH, LH Trade
2. HL, LL Trade
1. HH, LH Trade
Trade Candle
(D)
Wick Level
HH, LH Level
Safety Entry
Uptrend
NOTE: Usually, one candle should be left after the HH, HL, LH, and
LL level is broken. Because from here the market can reverse. But
if the market is coming from behind with a lot of momentum
then the market will first continue from there and then reverse
after that.
NOTE: Don't trade here because
the B-candle is a headless candle
(D)
and it is also a weak candle. But if
Trade Candle
there is a head of B-candle then
(C)
Wick High
you can trade here and if another
(B)
(A)
green candle comes after the
hammer candle (B-candle) then
HH, LH Level
you can take a trade on the next
Safety Entry candle. By the way, when a
hammer candle comes on top, it
becomes a hanging main candle.
Trade Candle
(C)
(B) NOTE: The continuation candle (
B-candle ) should close above the
HH, LH Level
(A) high of the A-candle
Safety Entry
Gap Up
Opening NOTE: This gap-up buyer has
done, but due to the reversal
HH, LH Level
level, there is a high possibility of
the formation of a red candle, so
do not trade here.
Gap Down
Opening NOTE: Here this gap-down has
been done by the buyers and
HH, LH Level
there is a high possibility of this
gap-down candle becoming
green. You can take trade here.
Gap Up Opening
Trade Candle
HH, LH Level
Trade Candle
New HH Level
HH Level
Uptrend
Do
wn
tre
HL LL Level nd
Safety Entry
(A) (B) (C)
Wick Level
Trade Candle (D)
Do
wn
tre
nd
NOTE: If you want to take an up trade and are using the safety
margin, the candle should come down first. If first go up and then
come down and you have clicked for up then there will be 90%
chance of loss.
1. M Trade
NOTE: Chart patterns are generally used for long term trading.
M Pattern
Common Level
Neckline Level
Trade Candle
M Neckline Level
Trade Candle
NOTE: Continuation candles should not be a hammer, doji etc.
M Body Neckline
M Wick Neckline
Trade Candle
NOTE: The trading rules for all patterns are the same as for the M
pattern.
M Neckline Level
Trade Candle
Gap Down
NOTE: This M pattern will still be
valid.
NOTE: Take the first 2-3 trades of the day with the minimum
amount on your preferred setup. If that trade becomes lose, then
be a little cautious on that day. Because your favorite setup has
lost 2-3 consecutive trades, then other setups may lose more.
2. W Trade
Trade Candle
Neckline Level
Common Level
Day #12
Market Structure
NOTE: Here the market has not made a new high and has broken
the previous low, which means that the structure of the market
has changed here. And the market is not yet in the mood to make
new highs.
character change breakout
NOTE: In internal price action, when the market will break the C-
high from the demand zone, then from there the market will go
to break the HH.
NOTE: If the market will not be able to break HH, then the
structure of the market will start changing from there.
Trade Candle
(3)
(2)
(1)
Safety Entry
Uptrend
NOTE: Do not trade against the trend in a tailless candle
NOTE: There should not be any level near the tailless candle.
NOTE: You can take a trade in the opening but it will be better if
you enter below 50% of the previous candle.
NOTE: Do not enter the trade when the tailless candle breaks the
reversal level
NOTE: If a strong candle is the only candle in its party, its 50%
level is the weak level. But if there is a strong candle in any
momentum then 50% of it will be a strong level.
NOTE: Avoid taking trades on the first and last candle of five
minutes in the tailless candle strategy
Seller Position
Reversal Candle
Buyer Position
Strong Momentum
NOTE: Positions of buyers and sellers have to be seen in the
direction of the trend, opposite to the trend the accuracy will be
less.
NOTE: When the market breaks a level for the third time, the
chances of a reversal will be high from there. Because it will be a
strong level for the positions of buyers or sellers. Or when the
market breaks the common level with two touches, then the
market is more likely to reverse from there.
(1) (2)
NOTE: The strength of the buyers and sellers positions is
determined by the market momentum. If there is a lot of
momentum after a buyers or sellers position, then that position
will be a strong position.
NOTE: HH, HL, LH, and LL is a strong buyers and sellers position
levels.
1. Bullish Hammer
Up
Most of the
reaction has
happened in
the wick
Down
Exhaustion has
happened
Down
Level Create Indecision
Most of the
reaction has Touching this level
happened in the market can go up
the body
NOTE: If the reaction of a candle is more inside the wick, then the
probability of continuation of the next candle is high. But if the
reaction of a candle is more inside the body then the next candle
is more likely to reverse
NOTE: If there is no level around the candle then the next candle
will come according to the reaction
Gap Up Opening
Up
Down
Level Create
Most of the
reaction has
happened in
the wick
Down
Indecision
Up
Touching this level the
market can go Down
Indecision
Up
Indecision
Up
The continuation can happen if there is sellers dominance
Exhaustion has
happened
Up
3. Inverted Bullish Hammer
Most of the
reaction has
happened in
the wick
Up
NOTE: But if the sellers have made the last entry here, then be a
little cautious. But if there is an uptrend, then even if the last
entry was made by the sellers, the next candle will be most likely
to go up.
Down
Indecision
Touching this level the
market can go Up
Down
Indecision
Down
Indecision
4. Bearish Hammer
this is a tailless candle Here the entry of sellers is
necessary in the last time.
Down
Most of the
reaction has
happened in
the wick
Touching this level the
market can go Down
Indecision
Up
If there is a trend, it is
more likely to go with the
trend
5. Strong Candle
Up
Indecision
Down
Gap-Up Opening Up
Exhaustion has
Down
happened
Down
Exhaustion has
happened
Down
Exhaustion has
happened
Down
Exhaustion has
happened
Up
Up
Down
Exhaustion has
happened
It can also do the continuation
Down
Down
6. Spinning Top
Up
C
Here closing buyers have done
O
O
Here closing sellers have done
C
Down
O
Here closing buyers have done
Up
C
NOTE: In the spinning top candle, whether more reaction has
happened in the body or in the wick, it does not matter, the only
thing that matters is who has done the closing. The party which
closes, the next candle is more likely to be formed by the same
party.
NOTE: There should not be any level around the spinning top
candle otherwise the next candle can reverse by touching that
level.
NOTE: All these candlestick reaction predictions are given for the
situation without level. Prediction candle can also be opposite if
there is a level around, so it is very important to pay attention to
the levels while trading on candle reaction.
7. Doji
NORMAL PREDICTION
Down
Neutral
Up
Neutral
Down
Up
Up
exhaustion
Up
Level
70%
Level
30%
NOTE: If 70% of the body of the candle that breakouts a level is
above the level, then it is a real breakout. And if the next candle
reverse also comes, then it will definitely respect the breakout
level and the reverse candle will most likely close above the
breakout level. And apart from this, you can also detect real and
fake breakouts from candle reactions.
Level Down
Main Level
Minor Level
(B)
50% Level
Trade Entry Point
Candle reaction in
first 30 seconds
Target Level
Level
NOTE: If you are not able to understand where the market will go
in the 1-minute chart, then you can understand where the
market can go by looking at the 5-minute chart.
NOTE: The market will complete the target of the opposite trend
only when the market is going towards the opposite target by
retesting a pattern.
NOTE: The common level will act as an average level and HH, HL,
LH and LL levels will act as sellers and buyers positions.
NOTE: FFLL is always complete with the trend, not the opposite
of the trend.
NOTE: Most of the time whenever the market completes the FFLL
a reversal candle occurs.
HH
Next FFLL Target
FFLL Target
NOTE: You can take long trade in FFLL for safety. For example,
you can take a trade of 2-3-5 minutes in a 1-minute chart.
NOTE: As long as the candles are full-fill each other, the market
will remain in the sideways zone and when it stops full-fill, the
continuation will begin.
NOTE: By the way FFLC is not very important, you can focus more
on FFLL only.
full filled with wick full filled with body
NOTE: If a candle has not been able to full fill the previous candle
completely, then the next candle can come to full fill.
NOTE: Retest is not necessary for breaking the FFLC zone. Usually
when the FFLC zone breaks, the market does continuation
FFLL Target
Trade Candle
Confirmation Candle
Resistance Level
Right Level
NOTE: If you have 2-3 consecutive losing trades, then just observe
the chart for 10-15 minutes and understand the movement of the
market and then take the trade on the tailless candle on the
confirmation setup. Because a tailless candle is a sureshot in
itself and if another setup is also found with it, then its accuracy
will increase further.
Day #16
5-Minute Candle Strategy/Single Candle Target/
Single Candle Closing Target/Market Minor Target
NOTE: The high and low of a 5-minute candle are also a target of
the market.
NOTE: Any candle always closes near the body or wick of the left
side candles.
50%
Trade Candle
NOTE: There should not be any nearby levels after the breakout
candle.
NOTE: Every candle has its own work, if any candle is not able to
do its work then the opposition party will come.
NOTE: You can also consider the closing and opening of the 5-
minute candle as an important level, but the high and low will
always be the most important levels.
NOTE: Usually most of the candles close near the wick level of
the left side candles or their 50% level. It hardly happens on the
body.
NOTE: If the market has come down from a high by making a big
and strong candle, then when the market again goes near the
level of that high, then there is a possibility of a reversal candle
at that level.
Trade Candle
NOTE: The high and low of any candle is always a target for the
next candle, whether the candle is of 1 minute time or 5 minutes.
Trade Candle
5-minute candle high
1 Minute Candles
Market Target
Trade Candle
1 Minute Candles
Market Target
Trade Candle
5 Minute Candles
5-minute candle Low target ( body )
Market Target
Trade Candle
1 Minute Candles
Trade Candle
NOTE: In this, you can take trade in opening also. The accuracy of
this pattern comes up to 90%.
Common Level
Trade Candle
Common Level
NOTE: This pattern wins even when the trend is the opposite.
NOTE: On the day the market is bad, on that day the trade
candle mostly becomes a doji candle, so in such a situation safety
margin entry is important.
Trade Candle
NOTE: The morning star pattern works very well if the middle
candle in the morning star pattern is a doji or a hammer.
Trade Candle
NOTE: When the market reverses from above and comes back to
the key levels of the Morning Star, the buyers will try to keep the
market above the key levels of the Morning Star.
Neckline
Piercing Line Pattern
(A) (B)
(E)
Trade Candle
M Neckline
Trade Candle
2nd Buyers Position
NOTE: The high and low of a 5-minute candle are always a market
target. They come in the small target of the market.
NOTE: In such a situation, the
M Neckline
trade should be taken with
some caution. In such a
situation, the trade candle will
Wick Low become a weak candle or a doji
candle. This can lead to the
Trade Candle next candle being a big candle.
NOTE: Usually the market gets stuck there when the market does
not continue for 2-3 candles after completing the FFLL. After
completing FFLL the market needs continuation as soon as
possible but if it does not happen then the market will get stuck
there.
Trading Rules
Rules
( 1 ) Always trade with the trend.
( 2 ) Do not make any trade of more than 2%. The first trade
should always be less than 2%.
NOTE: In case of loss in any trade, do not take the next trade
without knowing the reason for the loss.
NOTE: Till the time you do not come in daily or all-time profit, it is
always necessary to do it with trading discipline.
NOTE: If you have 100$ on the first day and you have lost 10$,
then on the second day you have to trade with the amount up to
2% of the 90$, which means always trade with the amount up to
2% of the total funds of the trading account.
NOTE: If you want, you can keep a profit target according to the
session. If you keep four sessions a day and keep a target of 5% in
each session. So your daily profit will be 20%.
NOTE: Trade after waiting for some time in case of loss of any
trade.
( 5 ) Fix trades per day or for each session. Like per day or per
session only 5 trades have to be done.
NOTE: If you keep a profit target of 10%, then you can keep a
stop-loss target of up to 20%.
NOTE: If you keep a daily profit target of 10%, then don't try to
achieve the full 10%. Stop trading whenever the target is
achieved by 7-8-9%.
NOTE: If the reference is on the left side of the market, then the
round number is not to be given any importance.
Trade Candle
( This is a sureshot because the
5-minute candle high previous candle is a tailless candle
and there is also a tailless candle
head. )
5-minute candle
NOTE: Don't trade in the tailless candle after 3rd candle means
trade only if 1st and 2nd candle comes tailless in any momentum
don't trade on 4th candle when 3rd candle comes tailless.
(D)
Tradable Candle
(C)
(A) (B)
NOTE: When the B-candle engulfs the A-candle and the B-candle
becomes a tailless candle. Only then the trade is to be taken on C-
candle.
No Tradable Candle
Trade Candle
Trade Candle
Tailless Candle
1-Minute Candle
Entry Point
Common Level
Trade Candle
Compounding Rules
NOTE: Compounding should always be done with extra profit
only. After doing 5-step compounding properly for 5 consecutive
times in the demo, you can do 3-step compounding in a real
account.
NOTE: This means on the day you win 25 consecutive trades, you
can do 3-step compounding in a real account.
NOTE: You have taken a trade even when you do not know about
the market. lack of patience.
Tailless Candle
Downtrend
If you want to trade, take it here
50% Level
(C)
(A) (B)
Tradeble Candle
Piercing Line level
NOTE: Here the market has completed the key level (minor level)
target of the piercing line pattern and has also completed the
hammer low target (minor level). That's why buyers have come in
the next candle despite the tailless candle and downtrend.
NOTE: The tailless candle has not broken the level of the piercing
line. So if we take a trade on the next candle (B-candle) of the
tailless candle, there is a possibility of reversal from the level of
the piercing line of the B-candle. Therefore, if there is a reversal
level nearby, do not trade there.
NOTE: Here B-candle has not been able to close above 50% of the
A-candle, so you can take a down trade on the next candle (C-
candle).
Level
(B
)
(A
)
Uptrend
NOTE: Here buyers have not felt any level in C-candle. This means
the C-candle level has not been touched. That's why the buyers
have not yet felt any level here. That's why the buyers here have
not felt the need to do a gap-down, so this gap-down has been
done by the sellers. But the sellers have not been able to gap-
down below the wick level and 50% of the previous candle (C-
candle). Buyers have stopped sellers from gapping below the wick
level and 50% level of C-candle so green candle can also be
formed here. Sellers have done this gap-down, so sellers will try
to make a red candle here, but due to the uptrend and
dominance of buyers, a green candle can also be formed here.
Downtrend
NOTE: Don't trade down here because B-candle has not touched
the level means B-candle has not felt the level. By the time the B-
candle touches the level, the time of the B-candle was over, so
now the buyers can come in the next candle to touch the level,
but if the B-candle was rejected by touching the level, we would
have Down trade could be taken on the next candle of the B-
candle.
Downtrend
Safe Entry
(B Entry Point
Trade Candle )
(A
)
Retest Level
50% Level
Body Level
NOTE: By the way, if you want, you can also take trade on A-
candle.
Common Level
NOTE: One should take a break from trading on the day when
there are 3-4 consecutive trade losses. And on the day when your
setup is working well, you can do aggressive trading with extra
profits. Due to this, you will avoid big losses on the day the
market is bad and on the day the market is going well, you will be
able to make a big profit.
Common Level
Market Pattern
Uptrend
(2)
Level
(1)
HL
Entry Point
HH Level
NOTE: Here you can take a trade with some caution. But the
entry candle should fall below the 50% level of the previous
candle in the first 30 seconds. Because the trade candle can also
reverse from the high of the wick of the previous candle, it is
necessary to have the head of the continuation candle.
Downtrend
Evening Star
Gap-Up Opening
Gap-Down Opening
Morning Star
NOTE: Here usually the buyers did not need to gap-up because
the buyers had already broken the common level with the gap-
down candle. But if the gap-up is above the key level of the
evening star, then we can consider an up trade here. But the gap-
up is below the key level of the evening star and there is also a
downtrend, so a red candle can also be formed here and the
trend is down anyway, so we do not go for the up.
Sellers Position
Trade Candle
Common Level
Common Level
Uptrend
NOTE: But if the buyers are not able to close the reversal candle
above the buyers position then the next candle is likely to be red.