Understanding candles simply

part 7

morning star

tis a bullish reversal pattern that forms after a decline in price. Here’s how to recognize it:

• The first candle has a bearish close • The second candle has a small range

• The third candle closes aggressively higher (more than 50% of the first candle)

this is what a Morning Star means

1. On the first candle, the sellers are in control as the price closes lower

2. On the second candle, there is indecision in the markets as both the selling and buying pressure are in equilibrium (that’s why the range of the candle is small)

3. On the third candle, the buyers won the battle and the price closes higher

In short, a Morning Star tells you the sellers are exhausted and the buyers are momentarily in control.

for more check next post