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7 Star

NUMBER7
Introduction

 7 star pattern is based on two bars; Up Bar and Down Bar. It is very similar to classic Bullish or
Bearish engulfing setups but it should be traded on my rules.
 This pattern occurs near a key level. Key level could be monthly or weekly highs, pivots. Ideal
near Multiple pivots.
 Sell Pattern should have two bars, 1st one Up bar (green), and 2nd one down (Red) bar. 2nd Bar
should engulf ( its high and low should break previous day’s lows and highs) and close.
 Buy Pattern should have two bars, 1st one down bar, and 2nd one Up (green) bar, 2nd Bar should
engulf ( its high and low should break previous day’s lows and highs) and close.
 Pattern should happen at peak of a rally, meaning, it should happen near bottom or top ONLY.
 Don’t consider the pattern when it happens during a consolidation or sideway price action.
 Target of the trade is nearest Pivot.
 7 Star Pattern should be traded on Hourly, Daily time frames ONLY.
Q: Do I need to focus only on those setups which are mentioned in the 3rd Slide? I mean the structures.
Ans: Yes. Focus only on those. If you have any other Backtest then try.
Q: Do we need to focus on Volumes during the 7 star pattern formation?
Ans: Not required, if there are volumes then it is fine.
Q: Do we need to trade 7 star pattern near Key levels like Pivots, weekly high/lows etc?
Ans: Yes. Because swing highs/lows in the market happens near a key level, which is decided by the smart money.
Q: What is the 7 star pattern target? And stopLoss?
Ans: Nearest Pivot level after your entry. And the stop will be the swing’s high for sell setup, and swing’s low for buy setup.
Q: When to take entry?
Ans: Boom Boom question! When you see the sell pattern, you should wait for the next day, price should trade below the down bar, I mean break the lows of the
engulfed bar, then take the trade, else ignore. Check Slide 12 and Slide 15, mentioned IMP. You need confirmation for both sell and buy pattern next day, which is the
KEY.
Q: If My entry and target reward is not suitable what should I do?
Ans: Ignore the trade, or wait for the pull back to happen near the resistance/support pivot then sell and keep the stop and trade.
Q: You suggested to apply only for Daily, Hourly chart, what about for 15mins time frame?
Ans: You can apply, it will work. If you focus on 15mins time frame it will become intraday setups, where you should sync pattern along with pivots and volumes.
Example: High volume and near a double pivot.
Q: If cash stock suggests sell pattern, and future does not show then what should I do?
Ans: Go with the cash, and sell, make sure in future, you will look for rejection setups.