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A New Market Pattern Just Dropped
Presenting the Lone Star Candlestick Pattern
Candlestick patterns are like a mystery box. We never know what to expect, except if we do our jobs right. Having a solid arsenal of these patterns coupled with a solid knowledge of why they work and why they don’t is definitely useful to improving your trading framework.
This article presents a new candlestick pattern called the lone star. You will learn what it is, how to code it, and how to interpret it. We will first go through the RSI, a building brick towards validating the pattern.
The Relative Strength Index (RSI)
The RSI is a popular momentum oscillator and technical indicator used by traders and investors to analyze and assess the strength and potential direction of a financial asset’s price movement.
Developed by J. Welles Wilder, RSI is a widely used tool in technical analysis, particularly in the field of stock trading, but it is also applied to other financial markets like forex, commodities, and cryptocurrencies.
It is based on the premise that prices tend to move in a certain way when they are overbought or oversold, and it aims to identify these overbought and oversold conditions to help traders make informed decisions.
