Morning Star
A three-candle bullish reversal: a big down candle, a small indecision candle, then a big up candle that closes back into the first.
The morning star is a classic bottoming pattern. A long red candle extends the downtrend, a small-bodied 'star' (often gapping down) marks a pause where selling dries up, and a long green candle closes well into the first candle's body — the handoff from sellers to buyers.
The further the third candle closes into the first red body, the stronger the reversal. A doji as the middle star (a morning doji star) is considered especially potent.
On StockSetups
StockSetups uses three-candle reversals like the morning star as confirmations on its chart-pattern setups, factoring their bullish bias into the dossier.
Frequently asked
Is a morning star bullish or bearish?
Bullish — it's a three-candle bottoming reversal that signals a likely shift from a downtrend to an uptrend, strongest when confirmed by volume and a close deep into the first candle.
Related terms
See morning star on tonight's board.
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