About Lesson
- A morning star is a visual pattern consisting of three candlesticks that is interpreted as a bullish sign by technical analysts. A morning star forms following a downward trend and it indicates the start of an upward climb. It is a sign of a reversal in the previous price trend.
- A morning star is a visual pattern made up of a tall bearish candlestick, a smaller black or bearish candlestick with a short body and long wicks, and a third tall bullish candlestick.
- The middle candle of the morning star captures a moment of market indecision where the bears begin to give way to bulls. The third candle confirms the reversal and can mark a new uptrend.
- The opposite pattern to a morning star is the evening star, which signals a reversal of an uptrend into a downtrend.
- For an evening star to be valid, the bearish candle should engulf 50% of the previous bullish candle.
