Morning star
bullish · candle pattern
The morning star is a three-candle bullish reversal pattern: a long bearish candle, a small-bodied indecision candle (often a doji) gapping below it, and a long bullish candle that closes well into the first candle's body. It typically forms at the end of downtrends.
Formation rules
- First: long bearish candle in a downtrend
- Second: small-bodied candle (gap down acceptable)
- Third: long bullish candle closing inside the first body
- Volume rises on the third candle
How to trade it
Buy on third-candle close. Stop below the second candle low. Measured target = first candle's height projected above the cluster.
Common pitfalls
- Without the third candle's confirmation, the pattern is incomplete
Statistical context
Nison and Bulkowski both report morning-star as one of the highest-reliability multi-candle reversal patterns.
Related patterns
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