Strategy Premise
This Strategy Uses Evening / Morning Star Pattern. Here are the characteristics of a Morning Star formation:
- The first candlestick is bearish.
- The second candlestick has a small body.
- It does not matter if the second body is bullish or bearish The small body serves as an indicator that the bears are losing their capacity to drive the market lower. It is also possible for the second candlestick to have no body (a doji).
- The third body is bullish that closes within the first candlestick, preferably beyond the halfway point of the first candlestick. This shows that the bulls are gaining control.
Here are the characteristics of an Evening star formation:
- The first candlestick strong bullish body.
- The second candlestick has a small body.
- It can be bullish or bearish. It is also possible for the second candlestick to have no body (a doji).
- The third candlestick has a strong bearish body and closes within the body of the first candlestick, preferably beyond the halfway point of the first candlestick in the pattern.
Strategy Logic
Long Entry: When candle1 Closing Price is < candle1 Opening Price and candle2 Opening Price is <= candle2 Closing Price and candle2 BodySize <= .333333*candle1 BodySize and candle2 WickLength is > candle2 BodySize and candle3 Opening Price is >= candle2 Closing Price and candle3 Closing Price is > candle3 Opening Price and candle2 BodySize is <= .333333* candle3 BodySize and candle3 Closing Price > candle1 Opening Price, Send LE.
Long Exit: Either when SL or Target is hit. If SL/TGT is not hit and candle1 Closing Price is > candle1 Opening Price and candle2 Opening Price is >= candle2 Closing Price and candle2 BodySize is <= .333333* candle1 BodySize and candle2 WickLength is > candle2 BodySize and candle3 Opening Price is >= candle2 Closing Price and candle3 Closing Price is < candle3 Opening Price and candle2 BodySize is <= .333333* candle3 BodySize and candle3 Closing Price is < candle1 Opening Price send LX and SE
Short Entry: When candle1 Closing Price is > candle1 Opening Price and candle2 Opening Price is >= candle2 Closing Price and candle2 BodySize is <= .333333* candle1 BodySize and candle2 WickLength is > candle2 BodySize and candle3 Opening Price is >= candle2 Closing Price and candle3 Closing Price is < candle3 Opening Price and candle2 BodySize is <= .333333* candle3 BodySize and candle3 Closing Price is < candle1 Opening Price , Send SE
Short Exit: Either when SL or Target is hit. If SL/TGT is not hit and candle1 Closing Price is < candle1 Opening Price and candle2 Opening Price is <= candle2 Closing Price and candle2 BodySize <= .333333*candle1 BodySize and candle2 WickLength is > candle2 BodySize and candle3 Opening Price is >= candle2 Closing Price and candle3 Closing Price is > candle3 Opening Price and candle2 BodySize is <= .333333* candle3 BodySize and candle3 Closing Price > candle1 Opening Price send SX and LE
Evening/Morning Star Pattern Strategy Parameters for TradingView Charts
Quantity: This is used to specify the trade quantity
Custom Stop Loss in Points: Movement in chart price against the momentum which will trigger exit
Custom Target in Points: Movement in chart price against the momentum which will trigger exit
TradingView Settings
1: Download The Pine Script Algo here
2: Open desired Chart in trading View with normal Candlestick, Select the desired timeframe of the chart, Go to the pine editor section, remove the default code, paste the downloaded code, save the file, and to chart.
3: You can optimize your strategy by changing the input parameters, using “Settings” of Evening/Morning Star Pattern Strategy.
Before setting up an alert, make sure of few things.
(1) You have selected the desired script, timeframe, and strategy settings.
(2) API bridge is configured and running.
Once you have made sure, click on settings. Then add alert and paste {{strategy.order.comment}} in the message box.
Important: do not change any settings during live trading.
NOTE: The pinescript works both with webhook alerts (TV Pro plan) and normal popup alerts (TV free plan).
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