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Additionally, the open and close of this formation occurs near the bottom of the range. And funes, the size of the body within the infinity forex funds should be relatively small. Now that we have a valid shooting star formation identified on our price forez, we need to check whether or not the price action is in an overall downtrend, and trading within a relatively well defined channel.
We will plot a bearish channel by connecting the most prominent swing highs within the downtrend, and then run a parallel of that line off of the lower swing points.
You can see the created bearish channel that is plotted infinity forex funds fuunds two downward pointing trendlines. With these conditions met, we should go back to the shooting star formation http://blogforex.tech/leverage/how-to-learn-forex.html further analysis.
We want the infinity forex funds star pattern to have either touched or penetrated the upper line of the bearish channel. If you look closely at the shooting star formation once again, you will notice that the upper wick did in fact penetrate fundss upper line of the bearish channel plotted. And with that, we have confirmation of shooting star pullback set up. Our entry calls for entering a short position infinity forex funds following the close of the confirmed shooting star pattern.
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