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Scalping is a very popular and widespread trading technique, which is widely used by large investment companies and banks, for example, because such trading can bring them really above-average returns within a few minutes.
There are many different types of scalping trading. It can be scalping based on trading news, indicators or trading candles, which is also the subject of today's very successful and time-tested trading strategy.
Morning and Evening Stars are certainly not among the other unusual names in astrology. In fact, these are trading candles that are called just that in their original names ("Morning Star" and "Evening Star"). With a little exaggeration, one could say that in this case they are one and the same type of candle (a candle "without" a body and with either one or both wicks), but what is important is where the candle is at a particular moment. If the candle is near the top then it is commonly referred to as an Evening Star, if it is nearer the bottom then it is an Early Star.
How to scalp with Evening and Morning candles
If a Morning Star candle forms after a down session, as in the chart below, then this is often a very important signal that indicates that the market is likely to turn. So this is one of the best times to take that much sought after profit with relative ease.
The chart below depicts a trading session where 3 star candles formed within a few minutes. The first of which would most likely have resulted in a loss when scalping this position (even scalping is not infallible and certain losses must always be accounted for), on the other hand, in the case of the second and third candles, as can be seen, traders could already make a profit in these cases. Because the market in both cases went exactly as the star candles indicated (warning: the green arrow on the chart indicates the direction of the trend between the second and third star and is thus not related to profit).
With today's scalping strategy based on morning and evening candles, it is possible to achieve a long-term success rate of around 70%, which is more than sufficient in terms of forming a good money-management and long-term sustainability of the strategy.
