Morning Star Candlestick Pattern

What the Morning Star pattern means

The pattern tells a story across three periods: heavy selling, then indecision as selling stalls, then strong buying that reverses direction. The small middle candle is the turning point, and the strong third candle confirms buyers have taken over.

How the Morning Star is traded

• →Enter long after the third candle confirms by closing deep into the first candle's body.
• →The deeper the third candle closes into the first, the stronger the signal.
• →Stop goes below the low of the middle candle.
• →Most reliable at support after a clear downtrend.

Common mistakes

• ✕Jumping in on the middle candle before the third confirms.
• ✕Entering after the third candle has already run, leaving a poor stop distance.