Shooting stars and Hammers are price phenomenons which depict notions of trapped traders; that showed initial euphoria, follwoed by true strength and direction that went the opposite way.
Putting this in line with the orignal direction of the trade which I intend to take, I thus have a trading edge.
On the h1 shows a clearer picture of bearflag. Although within the week to week context it has been ranging,
I am taking this trade setup as a chance to get into the big picutre of a giant head and shoulders.
This overall direction was recently analyzed on this post:
I still look to get in line with the big direction. Although now it is in the state of flux with price still not confirming it has completed this distribution.
Unfortunately price did not pan out they way it was envisioned to be. Many a times the reality does not align with the envision, and the importance of trade management is well exemplified in this trade where eventually due to not taking profits, the trade was exited at breakeven eventually. However it was a great exit as subsequently price reversed more than 300 pips.
Another point for discussion would be the validity og the shooting star.
Does it portray a notion of exhaustion?
Was this shooting star caught in a range?
Is it an “inside bar shooting star?”
Did it show signs of flushing at the lower timeframe?
All these are good questions for me to research further on the strength of daily shooting stars and pinbars.