coolboy2611

help me to confirm if this pattern is a morning star pattern

Long
NSE:SBIN   STATE BK OF INDIA
continuous downtrend in sbi but I think a morning star pattern is formed today. Can ANYONE HELP

Comments

very nice observation.
Though by textbook definition, this is not a morning star as the 2nd candle should be gap down.

But here's my analysis of this at how it projects the sentiment of the market.

Day 1 : Bears
Price opens gap down and made a subsequent lower low asserting the power of bears in the market.

Day 2 : Indecision
Price opens gap up (bullish), makes a subsequent lower low (bearish) and makes a spinning top pattern signalling indecision and maybe falling strength of bears.

Day 3 : Bullish
Price makes a long bullish candle breaking high of the Day 1's candle marking the reversal and shifting of power from bears to bulls.

In a way, Day 2 and Day 3 candles make a bullish engulfing pattern over Day 1's candle similar to the behaviour exhibited by a typical morning star pattern.

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I'm planning to enter a long position at the next bullish signal, however given the trading activity of last 2 days (2 red candles after Day 3),all my signal have turned bearish. :/
+1 Reply
not a morning star brother. the third candle should be inside first one.
+1 Reply
@Dwivedi_VIbhav i think it was a reversal pattern
Reply
yes I think this is reversal signal
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