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Morning Star Reversal Pattern
Definition:
Morning Star is a three candlestick bullish candlestick pattern that occurs after a down leg and starts out with a down bar with a relatively large real body. The second candle has a narrow range and gaps down on the open. The last bar gaps up and then closes as a bullish candlestick above the midpoint of the body of the first bar.
Practical Use:
Technical analysts will often use the Morning Star candlestick pattern as a bullish signal for buying opportunities. Additional confirmation in the form of a bullish trade setup is typically necessary before the trader will buy into a position.
