Morning star (candlestick pattern)
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The Morning Star [1] is a pattern seen in a candlestick chart, a popular type of a chart used by technical analysts to anticipate or predict price action of a security, derivative, or currency over a short period of time.
The pattern is made up of three candles: normally a long bearish candle, followed by a short bullish or bearish doji or a small body candlestick,[1] which is then followed by a long bullish candle. To have a valid Morning Star formation, most traders look for the top of the third candle to be at least halfway up the body of the first candle in the pattern. Black candles indicate falling prices, and white candles indicate rising prices.[2]
