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Morning star

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NSE:MGL   MAHANAGAR GAS LTD
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.
Comment: 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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