Candlestick-Muster
Morning Star
The Morning Star is a bullish reversal pattern represented by three candles. During a downtrend, the first candle is long and decreases. The second one is the so-called “star”, which has a small body and closes below the previous low. The third candle is a long increasing candle closing above the midpoint of the first candle. After several decreasing candles, a small green candle, the star, forms. This means that the current trend is losing strength, and the next candle confirms it. The third one initiates a bullish movement that could reverse the price direction. Therefore, after the third candle is completed, this pattern will generate a buy signal in your strategy.
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