Candlestick patterns
Morning star pattern
Three candles after a decline: a big red candle, a small indecision candle, and a strong green candle that closes above the middle of the first.
Why it works
It shows selling pressure fading (the small candle) and buyers taking control (the green candle): a classic bottom pattern.
How to use it
Combine it with support or a discount zone. Stop below the low of the pattern; first target at the last lower high.
The typical mistake
Ignoring the location: a morning star in the middle of a strong downtrend often just becomes a pause.
FAQ
What is Morning star in trading?
Three candles after a decline: a big red candle, a small indecision candle, and a strong green candle that closes above the middle of the first.
How do you trade Morning star?
Combine it with support or a discount zone. Stop below the low of the pattern; first target at the last lower high.