There should a downtrend is before a morning star.
#Morning star chart how to
How to Trade Morning Star Candlestick Pattern?īecause this pattern is a reversal structure, it needs more supporting signals to reverse a trend.Ī morning star becomes more reliable if it has more of the following features: The counterpart of the morning star is the evening star which is a bearish reversal pattern. If the second candle in a morning star is a doji, the pattern is called the morning doji star pattern. After completion of the third session (a large green candlestick), the bears lose, and the bulls grab the power. The star in a morning star indicates that the bears are losing strength. However, in the forex and crypto markets, gaps don’t occur because, generally, the closing price of a candle is the same as the opening price of the next candle. Ideally (not necessarily), in the stock market, the second candle should open after a gap-down, and the third candle should open after a gap-up. The first candle is a large red candle, the second candle is small (known as the star), and the third candle is a large bullish candlestick. The morning star is a bullish reversal candlestick pattern that appears at the bottom of a trend or end of a bullish continuation pattern.
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