Chart Patterns

The Morning Star

The Morning Star is multiple candlestick charts pattern which is formed after a downtrend indicating bullish reversal.

It is made of 3 candlesticks, first being a bearish candle, second a Doji and the third being a bullish candle.

The first candle shows the continuation of the downtrend, the second candle being a doji indicates indecision in the market, and the third bullish candle shows that the bulls are back in the market and reversal is going to take place.

The second candle should be completely out of the real bodies of the first and third candles.

Traders can enter a long position if the next day a bullish candle is formed and can place a stop-loss at the low of the second candle.

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