Morning Star
🌅 Morning Star Candlestick Pattern – The Dawn of a Bullish Reversal
The Morning Star candlestick pattern is a powerful bullish reversal signal that forms at the bottom of a downtrend. It represents the transition from bearish dominance to bullish strength — much like the rising sun after a dark night.
Illustration: The Morning Star — large red candle, small indecision candle, and strong green reversal candle
📘 What Is the Morning Star Pattern?
The Morning Star pattern is a three-candle formation that signals the beginning of a new bullish trend. It typically forms after a strong downtrend, marking the point where sellers lose control and buyers start to dominate.
- 1st Candle: A large red candle showing strong bearish pressure.
- 2nd Candle: A small-bodied candle (Doji or neutral) showing market hesitation.
- 3rd Candle: A large green candle confirming the shift to bullish control.
Chart Example: Morning Star pattern forming after a strong downtrend
💡 Market Psychology Behind the Morning Star
The first long red candle shows bears in full control. The second small candle shows uncertainty — selling pressure weakens, and buyers start entering the market. Finally, the third long green candle confirms that bulls have taken charge, reversing the trend direction.
✅ Pro Tip: The Morning Star is more reliable when it forms at a major support zone or after a prolonged bearish run.
⚙️ How to Trade the Morning Star
- Identify a strong downtrend followed by the three-candle Morning Star formation.
- Wait for the third candle (green) to close above the midpoint of the first red candle.
- Enter a buy (long) position at the close of the third candle.
- Set a stop-loss just below the low of the pattern.
- Place your take-profit at the next resistance or aim for a 1:2–1:3 risk/reward ratio.
Example: Third green candle confirms bullish reversal and buy opportunity
📊 Confirmation Signals
- RSI or MACD shows bullish divergence.
- High volume on the third (bullish) candle.
- Pattern forms near a long-term support area.
🏁 Conclusion
The Morning Star candlestick pattern is one of the most effective tools to identify potential bullish reversals. When supported by volume and technical confirmation, it provides a high-probability entry for traders looking to catch early trend reversals.
“When the Morning Star rises — the bears fade away, and the bulls awaken with strength.”