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http://www.informedtrades.com/ A lesson on how to trade the morning and evening star candlestick chart patterns for active traders and investors using technical analysis in the stock, futures, and forex markets.

In our last lesson we looked at the Hammer and Hanging Man Candlestick Chart Patterns. In today’s lesson we are going to look at two more reversal candlestick patterns which are known as the Morning and Evening Star.

The Morning Star

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The most powerful and profit packed technical trade signal of the last 100 years and your next 100 months. Stocks,Commodity Futures, and Forex charts all reveal this amazing trade signal at a glance.

Author: WoodyBoog
Keywords: Stock Charts Commodity Forex Technical Trade signals explode with power and profit potential How to finance technology home
Added: December 28, 2007

http://www.informedtrades.com/ A lesson on how to trade the Hammer and Hanging Man Candlestick Chart Patterns for active traders and investors in the forex, futures, and stock markets.

Like the Spinning Top and Doji which we have studied in previous lessons, the Hammer candlestick pattern is made up of one candle. The candle looks like a hammer as it has a long lower wick and a short body at the top of the candlestick with little or no upper wick. In order for a candle to be a valid hammer most traders say the lower wick must be two times greater than the size of the body potion of the candle, and the body of the candle must be at the upper end of the trading range.

When you see the Hammer form in a downtrend this is a sign of a potential reversal in the market as the long lower wick represents a period of trading where the sellers were initially in control but the buyers were able to reverse that control and drive prices back up to close near the high for the day, thus the short body at the top of the candle.

After seeing this pattern form in the market most traders will wait for the next period to open higher than the close of the previous period to confirm that the buyers are actually in control.

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