Morning Star Candlestick Pattern definition and guide

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The Morning Star candlestick pattern is used to recognize a bullish reversal point, also known as the bottom of a downtrend. From there you will easily set a Buy/Up trade.

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Morning Star Characteristics

While the Evening Star candlestick pattern seeks a downside reversal, the Morning Star is a sign that only occurs at the end of a downtrend to find a bullish point. Similar to the appearance of Morning Star, the bright time of Venus (morning star) at dawn. It was a dark sky with the Venus blazed flash and then the sky became light enough to clearly distinguish it from land and water. Morning Star model includes:

• Candle 1: Long bearish candlestick.
• Candle 2: A Doji or very short bullish/bearish candlestick.
• Candle 3: Long bullish candlestick, but the closing price is inside the body of candle 1.

The Morning Star candle is usually the end of a downtrend. Rarely happens, but hit probability up to 80%. The best time to open a trade is to end candle 3 or as soon as possible. We need to carefully consider when the Doji appears.

Open transaction when meeting Morning Star pattern

You will see this pattern at the end of a downtrend. Most Traders who meet the Morning Star are to enter an Up/Buy.

When the market was steadily growing, then a Doji appeared followed by a long bullish candle, the Morning Star pattern appeared. It should be noted that the 1st and 3rd candles in the pattern are long candles if the short one is invalid.

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If you are trading FTT, you use 1-minute candles then set a 5-minute order, if you use a 5-minute candle, you should place a 30-minute, 60-minute order.

Conclusion

This pattern is easy to confuse if you do not miss the following:

• The Morning Star pattern occurs at the end of a downtrend.
• Candle 1 should be a long body candle.
• Candle 2 is a Doji or a very small Up / Down candle.
• Candle 3 should be a bullish candle with a long body, but the close remains inside candle 1.
• If the long 3-day candlestick breaks through the 1-day candlestick, you need to consider using other indicators, patterns, and tactics to see if there is a big move imminent.

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