Shooting Star/PIN bar

How to identify

• Bearish in body (black)

• Wick rejection to the upside equal to or greater than body

• Small if no wick to the downside

• Confirmation of sellers liquidity

Where to find it / Purpose of it

• The TOP of an uptrend

• Areas of supply or resistance

• Points of interest

• Areas of premium price ranges

• This is an indication that sellers are involved in the market potentially creating a TOP and indicated a shift order flow bearish

Timeframe usage

• Weekly and daily provides future bias of direction

• 4hour/3/2/1 timeframes, momentum timeframes confirmation of rejection intraday setups

• 15/5 min intra day time frames potential entry confirmation

How to trade it

• If order flow presents itself on higher time frames we look to scale into lower Time Frames trending structure and volume discrepancy to rebalance before continuing the trend

• Highest probability usage will come when clearing a high first and closing back below as a shooting star, (liquidity, swept, reversal confirmed)

Characteristics of the price action

Bearish Engulfing

How to identify

• Open close or prior and current candle must be on the same level

• The bearish candle will be equal to or greater than the previous candle body

Where to find it / purpose of it

• The top of an uptrend

• Areas of supply or resistance

• Points of interest

• Premium price ranges upon bullish retracements

• Confirmation of a HH

Timeframe usage

• Weekly and daily provides future bias of direction

• 4 hour/3/2/1 timeframes, intraday setups confirmation of rejection

• 15/5 min, momentum timeframes potential entry confirmation

How to trade it

• If price has additional confluences of supply we can use higher time frames as a continuation of bias. However, we want to scale down to find future entries

• If we have a session-based confirmation we can consider using the prior bullied candle as a volume catalyst to be mitigated before trading a continuation