Morning Star

What is a 'Morning Star'

A morning star is a bullish candlestick pattern that consists of three candles that have demonstrated the following characteristics:

1. The first bar is a large red candlestick located within a defined downtrend.
2. The second bar is a small-bodied candle (either red or white) that closes below the first red bar.
3. The last bar is a large white candle that opens above the middle candle and closes near the center of the first bar's body.

As shown by the chart, this pattern is used by traders as an early indication that the downtrend is about to reverse.

Morning Star

BREAKING DOWN 'Morning Star'

A morning star pattern can be useful in determining trend changes, particularly when used in conjunction with other technical indicators. Many traders also use price oscillators such as the MACD and RSI to confirm the reversal.

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RELATED FAQS
  1. How do I Implement a forex strategy when spotting a Morning Star pattern?

    Learn how to design a forex trading strategy to use for trading the morning star candlestick pattern, an indicator of a bullish ... Read Answer >>
  2. How do I build a profitable strategy when spotting a Morning Star pattern?

    Create a profitable trading strategy to use when spotting a morning star candlestick pattern that indicates a bullish market ... Read Answer >>
  3. How effective is creating trade entries after spotting a Morning Star pattern?

    Understand the elements of the morning star candlestick pattern and how to best utilize this reversal signal to create effective ... Read Answer >>
  4. How do I build a profitable strategy when spotting an Evening Star pattern?

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  5. How are Star patterns interpret by analysts and traders?

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  6. How are Morning Star patterns interpreted by analysts and traders?

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