Morning Star & Evening Star
Morning Star
Morning Star is a bullish 3-candle reversal pattern, appearing in a downtrend.
Morning Star identification:
The first candle is a strong bearish candle.
The second candle has no real body or very small real body (Doji, Hammer or Spinning Top).
The third candle is a bullish candle, closing more than 50% of the first candle.
Meaning of Morning Star:
The first candle shows that sellers are in control.
On the second candle, there is indecision in the market because both buying and selling pressure are in balance (that's why the real body is small).
On the third candle, the bulls won and closed the price high.
In short, the Morning Star tells you the bears are exhausted and the bulls are in control.
Evening Star
Evening Star is a set of 3 bearish reversal candlesticks, appearing in an uptrend.
Evening Star identification:
The first candle is a strong bullish candle.
The second candle has no real body or very small real body (Doji, Hammer or Spinning Top).
The third candle is a bearish candle, closing more than 50% of the first candle.
Meaning of Evening Star:
The first candle shows that the buyers are in control.
On the second candle, there is indecision in the market because both buying and selling pressure are in balance (that's why the real body is small).On the third candle, the bears won and closed the price low.
On the third candle, the bears won and closed the price low.
In short, the Evening Star tells you that the bulls are exhausted and the bears are in control.
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