WIPRO Bullish above 543, SL 527, Target 570

[bhavani]

Morning star spotted in WIPRO with a significant volume and a prior downtrend indicating the trend reversal. In doji usually the reward is more than the risk taken.

Trade plan:

Long entry-543, SL- 527, Target-570

[V.VEDANAYAGAM]

DEAR SIR /MADAM
IF all the FIRST DAY or THIRD DAY candle is a variations of DOJI then it cannot be considered as morning/evening star pattern
IN the chart snap shotted both first and third day candles are variations of DOJI
Please refer the enclosed chart

[bhavani]

Sorry sir , i could not get your point. Can you brief it on?

[V.VEDANAYAGAM]

DEAR SIR /MADAM
MORNING/EVENING STAR patterns are THREE day reversal patterns in which the following combination alone is applicable
MORNING STAR
First day MUST be a BEAR (ordinary )candle and NOT the different types of DOJI candles(ex hammer/doji/hanging man/shooting star/grave stone /dragon fly)
Second day candle MUST be a DOJI/HAMMER
Third day candle MUST be a BULL(ordinary) candle and NOT the other types of DOJI
EVENING STAR
First day MUST be a BULL (ordinary) candle and NOT different types of DOJI
Second day candle MUST be a DOJI/hanging man
Third day candle MUST be a BEAR(ordinary) candle and NOT the different types of doji
NOW refer the chart where you can find all the three candles are different types of DOJI only

[bhavani]

Good point.  Thanks for your briefing.

[Author]

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