Morning Star - Candlesticks Reversal Pattern
******** Candlestick Reversal Pattern Probability High ***********
Bearish Reversal Pattern
After an downward trend a gap appear then a small green candlestick. Sellers feel the price is too low and buyers enter. A gap up appear as nobody wants this stock at this price. A reversal has become much more probable.
Characteristics
After an downward trend a gap occurs. Then a green candlestick appears.
Another green candlestick comes in. The real bodies of the candlesticks do not touch. (The candlestick can also be red but green is better.)
The Morning Star can be Red or Green but Red is a little better.
Confirmation
In this case confirmation has already occurred. You may be a conservative trader and wait for another green candlestick to form at the halfway point or above the real body
Trading Psychology
1. It is a sign of trend indecisiveness and a weakness reveals itself at the upper level. Buyers did not find this level appealing and neither did sellers so attantion must be paid to it as it may become a level of resistance you can play off.
2. This is also a level you may want to cash in Long at if there is a downward trend and you jump in when the stock turns around again.
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