A shooting star is a bearish candlestick that has a small body, a long upper shadow, and little or no lower shadow. The shooting star is basically an inverted hammer (or a gravestone doji) that appears at the top of an uptrend. The formation of this pattern is the result of zealous buying. Prior to the shooting star formation, price is basically in a momentum run pushed upward by bullish energy. On the day of the shooting star formation, price rises significantly higher, fueled by exuberant buying and reaching overbought conditions. At that point price starts to pullback and closes the day near or below the opening price. Generally that marks the end of the uptrend and the beginning of a correction or downtrend.
As we all know, 2022 has been a painful year, and it continues to be so. What works during a bearish market are a few strategies: shorts, inverse ETFs, holding cash positions and day trading. Today we take a look at ATXI and see how we day traded it. Watch this video to get the technicals. Good trading! Trading Risk Disclaimer All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is also substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your own suitability to trade. Trading results can never be guaranteed. SharperTrades, LLC is not registered as an investment adviser with any federal or state regulatory agency. This is