BULLISH MORNING STAR

BULLISH MORNING STAR

Definition :

This is a three-candlestick formation that signals a major bottom. It is composed of a first long red body, ‘a second small real body, white or black’, gapping lower to form a star. These two candlesticks define a basic star pattern. The third is a blue candlestick that closes well into the first session’s red real body. Third candlestick shows that the market turned bullish now.

Recognition Criteria:

1. Market is characterized by Downtrend.

2. We see a long red candlestick in the first day.

3. Then we see a small body on the second day with a gap in the direction of the previous trend.

4. Finally we see a blue candlestick on the third day.

Important Factors:

The stars may be more than one, two or even three. The reliability of this pattern is very high, but still a confirmation in the form of a white candlestick with a higher close or a gap-up is suggested.