Pivot Points with Shooting Star Reversal Pattern Forex Trading Strategy For MT4
The Pivot Points with Shooting Star Reversal Pattern Forex Trading Strategy For MT4 This system is a classic example of how the indicators are used by the top traders in the world to improve to price action trading method.
To use this strategy, you don’t have to learn PA rather one pattern is enough. We will be using a pin bar pattern that has a small body and a bigger shadow exceeding 3 times of its body. After the pin bar, if the candle is bearish, we have a bearish shooting star often known as the bearish evening star. If it is bullish we have a bullish morning star pattern.
The pattern needs to be analyzed with the help of the auto pivot indicator. It will create colored labels in the chart that will be acting as support and resistance. Instead of trading all these levels, we have to determine the most significant ones. The significant pivot level will match the highs and lows of the market. The highs are the critical point where you need to go short with the bearish shooting start. After the strong rejection of the highs and pivot points, the short trade will be taken. The stop will be above the tail of the pin bar and the take profit will be set according to the nearest pivot level.
The long orders are triggered when the bullish shooting star is found at the critical support level of the auto pivot tool. These levels must a significantly low or else ignore the trade setup. After executing the long order, set the stop below the tail of the shooting start and set the take the profit to the nearest resistance.
This strategy is a very powerful way to trade the reversal still it’s better to stay cautious about the losing trades. The risk factors should vary depending on the trader’s skill and analytical time frame. The skilled traders use the H4 and higher time frame and they risk 2-3% of their balance. So, never exceed this risk exposure level or else you won’t be able to keep your fund safe.
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