The concept of stars is Japanese in origin. It belongs to that portion of technical analysis, which is much embraced by the Western world. Its fast growth has proven that Japanese candlestick strategies is not just efficient but it also serves traders with great advantages.

The first most crucial thing that must be taken into consideration is the chart. It should be the candlestick chart and must not resemble like an ordinary line or bar chart. The patterns must only belong to the candles, if you want to use candlestick strategies.

Morning star strategy

Morning star

If the pattern is following a falling trend, it is referred as Morning star during which bullish condition is more expected. However, in case of binary options, it will be better to search for buy calloptions. If the patterns are following a rising trend, then it is referred as Evening star and this time bearish condition is more expected by traders.

evening star strategy

Evening star

All three candles are different. Despite, the first and last one appears similar but their body is different. The small candle situated in the middle makes the patterns more recognizable. The body of candle may be green or red but it really doesn’t effects interpretation of the whole concept. After analyzing such patterns, it is crucial to understand that price is forming after every bearish/bullish trend and this clearly means that bulls/bears will not give up easily.

It helps in providing a basic entry level for buying call or put options. It is reliable to wait for 50% retracement of the last candle that will come and serve as level to buy call/put options. It entirely depends on the type of stars you are searching for.