✤ Setup Conditions:
1. 1st candle’s close must be less than 1st candle’s open, it means 1st candle is a bearish candle.
2. 2nd candle can be bullish bearish, or neutral like a Doji that opens at gap down.
3. 3rd candle’s close must be greater than 3rd candle’s open, it means 3rd candle is a bullish candle..
4. 3rd candle’s close must be greater than 50% of the 1st candle's entire range.
5. 4th candle confirmation needed.
The Morning Star is a three-candlestick pattern that signals a potential reversal from a downtrend to an uptrend. It suggests that selling momentum has diminished, and buying pressure is starting to dominate.
✤ Key Characteristics:
1. First Candle:
☛ A large bearish candlestick (red/black) showing strong selling pressure.
2. Second Candle:
☛ A small-bodied candlestick (can be bullish, bearish, or neutral like a Doji) that gaps down, indicating indecision or a pause in the downtrend.
3. Third Candle:
☛ A large bullish candlestick (green/white) that closes well above the midpoint of the first candle, confirming the reversal.
✤ Interpretation:
☛ Suggests the market is transitioning from bearish to bullish sentiment.
☛ Works best when it forms near a significant support level or after a prolonged downtrend.
✤ Confirmation:
☛ Traders often wait for the next candle to confirm the upward trend by closing higher.
