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Morning star
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Morning Star
The Morning Star Pattern is viewed as a bullish reversal pattern, usually occuring at the bottom of a downtrend. The pattern consists of three candlesticks:
morning star candlestick chart pattern
Large Bearish Candle (Day 1)
Small Bullish or Bearish Candle (Day 2)
Large Bullish Candle (Day 3)
The first part of a Morning Star reversal pattern is a large bearish red candle. On the first day, bears are definitely in charge, usually making new lows.
The second day begins with a bearish gap down. It is clear from the opening of Day 2 that bears are in control. However, bears do not push prices much lower. The candlestick on Day 2 is quite small and can be bullish, bearish, or neutral (i.e. Doji).
Generally speaking, a bullish candle on Day 2 is viewed as a stronger sign of an impending reversal. But it is Day 3 that holds the most significance.
Day 3 begins with a bullish gap up, and bulls are able to press prices even further upward, often eliminating the losses seen on Day 1.
The Morning Star Pattern is viewed as a bullish reversal pattern, usually occuring at the bottom of a downtrend. The pattern consists of three candlesticks:
morning star candlestick chart pattern
Large Bearish Candle (Day 1)
Small Bullish or Bearish Candle (Day 2)
Large Bullish Candle (Day 3)
The first part of a Morning Star reversal pattern is a large bearish red candle. On the first day, bears are definitely in charge, usually making new lows.
The second day begins with a bearish gap down. It is clear from the opening of Day 2 that bears are in control. However, bears do not push prices much lower. The candlestick on Day 2 is quite small and can be bullish, bearish, or neutral (i.e. Doji).
Generally speaking, a bullish candle on Day 2 is viewed as a stronger sign of an impending reversal. But it is Day 3 that holds the most significance.
Day 3 begins with a bullish gap up, and bulls are able to press prices even further upward, often eliminating the losses seen on Day 1.
Note
tomorrow candle will confirm its bullishness. watch out. it is formed at the support level and it is another significance and volume is also high
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