BEST Hammer Candlestick & Shooting Star Candlestick Pattern Trading Strategy (Pro Instantly) transcript

in this video we're going to show you how to use the most important Candlestick pattern which is the longwick candle there are four variants of the longwick candle the hammer Candlestick pattern the inverted Hammer Candlestick pattern the shooting star Candlestick pattern and the hanging man Candlestick pattern there is also a series of Premium trading guides that work in combination with this video we'll show you how to get these later on please hit the like button but more importantly hit the notifications Bell so that you know exactly when new content is released starting with the hammer Candlestick pattern you have a downtrend the hammer candle forms which has a small body followed with a long Wick sticking out below the candle the candle body can be red or green from a price action standpoint this shows price failed to close as a bearish engulfing candle with a big rectangular body which represents a loss of bearish momentum sellers taking profit and potential buyers stepping in the hammer Candlestick pattern can often trigger a reversal upwards a bonus tip the long longer the wick the better the candle now on the charts downtrend Hammer Candlestick pattern and also a dragonfly dogee Candlestick which then results in a trend change from a downtrend to an uptrend next is the shooting star Candlestick pattern you have an uptrend the shooting star candle forms which has a small body followed with a long Wick sticking out above the body the candle body can be red or green from a price action standpoint this shows price failed to close out is a bullish engulfing candle with a big rectangular body which represents a loss of bullish momentum buyers taking profit and potential sellers stepping in the shooting star Candlestick pattern can often trigger a reversal downwards again the longer the wick the better the candle now on the charts uptrend shooting star Candlestick pattern Trend change into a downtrend next is the inverted Hammer Candlestick pattern you have a downtrend the inverted Hammer candle forms which has a small body followed with a long Wick sticking out above the body and against the larger moving downtrend the candle body can be red or green from a price action standpoint buyers suddenly entered the market drastically at this price area which creates the longwick to stick out above the inverted Hammer Candlestick pattern can often trigger a reversal upwards now on the charts downtrend two inverted Hammer Candlestick patterns Trend change into an uptrend next is the hanging man Candlestick pattern you have an uptrend the hanging man candle forms followed with a long Wick sticking out below the body and against the larger moving uptrend the candle body can be red or green from a price action standpoint sellers suddenly entered the market drastically at this price area which creates the long Wick to stick out below the hanging man Candlestick pattern can often trigger a reversal downwards now on the charts uptrend hanging man Candlestick pattern Trend change into a downtrend so the best way to use these Candlestick patterns is to combine them with key levels before we continue we want to hear from you tell us in the comments below right now what video topics we should cover next as always please hit the like button as it allows for our team to continue to produce more free videos on YouTube price comes down hits and reverses giving you a key support level as price comes back down you had an inverted Hammer Candlestick pattern showing a reaction to the support level now our reaction does not equal an automatic long trade as price can form the candle stall at the key support level and still continue on down that's why after the inverted Hammer Candlestick pattern forms at the support level you need to look for Trend change price action that confirms the downtrend is over and that a reversal and Trend change has begun and you got that Trend change confirmation through the bullish engulfing can candle that formed right after that is also a candle color change and is then when you would look for a long entry point let's show this again these reversal points give you a key Zone as price comes back down you add a hammer Candlestick pattern form showing a reaction to the Zone once you had a bullish engulfing candle form off of the level this confirms the trend change from a downtrend to an uptrend and is then when you would look for a long entry you then also had a second continuation entry here through the pullback to new support and another hammer Candlestick pattern let's show this again this is the Nvidia stock these reversal points give you a key Zone as price comes back down you add a hammer Candlestick pattern showing a reaction to the Zone trend line placed above and once price broke through the trend line you would look for a long entry point through the lower intraday time frames let's show this again this reversal Point gives you a key support level as price comes back down you add a hammer Candlestick pattern form showing a reaction to the level entry entry one is through this bullish engulfing Candlestick pattern entry two is through the trend line break this is also a double bottom pattern by the time it breaks the trend line making it an even higher quality entry now going in the opposite direction this swing High reversal Point gives you a key resistance level as price comes back up you add a shooting star Candlestick pattern form showing a reaction to the level entry one is through this bearish engulfing Candlestick entry two is through the trend line break here let's show this again this swing High reversal Point gives you a key resistance level as price comes back up you had a hanging man Candlestick pattern form showing a reaction to the level entry one is through the bearish engulfing Candlestick entry two is through the trend line break now a higher quality variant of this strategy is when you have multiple Candlestick patterns stacked together at the key level this swing High reversal Point gives you a key resistance level you had shrinking candles which shows momentum loss and is great to see when trading reversals you then had a hanging man Candlestick pattern followed by a shooting star Candlestick pattern that is also a candle color change the stacking of all these different Candlestick patterns together creates for a higher quality reversal trade setup the bearish engulfing candle pattern is your Trend change confirmation and as then when you would take a short entry let's show this again you have a moving uptrend so you want to trade with the trend these reversal points give you a key Zone as price comes back down you had an inverted hammer and two Hammer Candlestick patterns from a price action standpoint this shows that price tried three times to push lower and failed meaning buyers held the Zone strong once you had the bullish engulfing Candlestick pattern form you would look for a long entry point let's show this again these reversal points give you a key Zone as price comes back down you had multiple Hammer Candlestick patterns and multiple longwick variants from a price action standpoint sellers tried 14 times to push through the Zone but failed which resulted in all the those longwick candles to form and this shows that buyers held the level strong that a potential massive move upwards is coming trend line placed like this and once it broke you would take a long entry now to take this all up a notch you can combine the usage of multi-time frames for earlier sniper entry points you have a moving uptrend so you want to trade with the trend these reversal points give you a key Zone as price comes back down You Had A Hammer Candlestick pattern form which presented a long trade opportunity Now using only one time frame you would have to wait for this bullish Candlestick pattern to form meaning you wouldn't be able to enter until up here for an earlier entry point down here you need to look inside of your Hammer Candlestick pattern trade setup area for Trend change price action so let's pull up the lower intraday time frame and put it beside this one on the left is the main time frame we just looked at and on the right is the same asset but using the lower intraday time frame this trade setup area here where the hammer Candlestick pattern formed is this same same area here on the lower intraday time frame you had a perfect descending triangle reversal pattern form right inside of the hammer Candlestick pattern area from the higher time frame once price broke above the pattern here the trend change is confirmed and is then when you would go to the even lower intraday time frames and look for an exact long entry point using our entry and exit strategy and key tool now if you used only one time frame you didn't get into this long trade until up here which is roughly here on the lower intraday time frame but by using multi-time frames you got it all the way down here which is earlier it means you gained more profit from this long trade let's show this again you have a moving downtrend so you want to trade with the trend these reversal points give you a key Zone as price comes back up you have two shooting star Candlestick patterns form which presented a short trade opportunity you're also at the right shoulder of The Head and Shoulders pattern which is a reversal pattern and makes the short trade setup even higher quality now when you look inside of the shooting star short trade setup area but on the lower entay time frame on the right trend line placed like this and once it broke you would look for a short entry point using only one time frame you wouldn't get into the short trade until down here which is roughly here on the lower intraday time frame but by using multi-time frames you got in up here which is earlier it means you gained more profit from the short trade there is a series of Premium trading guides that work in combination with this video and are required to have to fully grasp these Concepts they are available on our site at WIS trade.com the specific link is in the description below don't forget to tell us in the comments below what topics you want us to cover next make sure to hit the like button on this video as it allows for our team to continue to produce more free videos on YouTube also go follow us on our Instagram account @ yre to stay notified about a lot of big projects we have dropping soon so thanks for watching and I'll see you in the next episode [Music] I