Bullish3-CandleCh. 11

Morning Star

A three-candle reversal: a large red candle, a small undecided candle, then a large green candle. The decline loses its force.

Where it matters

Most meaningful at a major support zone after a clear decline.

The pattern in context
Morning Star: Most meaningful at a major support zone after a clear decline.Support50%Confirm

Faded candles are the trend before it, the band is the pattern, the dashed line is the level it formed at, and ✓ marks the confirming candle.

How to read it

  1. 01

    How it forms

    Candle 1 is a large red candle. Candle 2 has a small body. Candle 3 is a large green candle that closes above the middle of candle 1.

  2. 02

    Where it matters

    Most meaningful at a major support zone after a clear decline.

  3. 03

    What confirms it

    The third candle itself is the confirmation; follow-through above its high adds to it.

  4. 04

    Where the idea is wrong

    A close below the low of the middle candle (the “star”).

  5. 05

    What volume should do

    The third candle ideally carries the highest volume of the three.

  6. 06

    Common mistake

    Accepting a third candle that closes only slightly higher. It should recover well into candle 1’s body.

From the book

Read the full chapter in the book.

Chapter 11 of Trading Candlestick Patterns explains the Morning Star with real Indian market charts, volume context and stop-loss placement.

Trading Candlestick Patterns by Rohit Singh

Educational content only. A pattern describes what buyers and sellers did; it does not predict what price will do next. Not investment advice or a buy, sell or hold recommendation.