Hello traders, in this lesson we will learn about the Morning Star candlestick pattern and understand how it looks on the chart.
Morning Star Candlestick Pattern / When is it seen in the market
The Morning Star candlestick pattern is usually seen in a downtrend market and is a bullish reversal pattern.
Morning Star Candlestick Pattern / What it looks like on the chart
Morning Star candlestick pattern is made up of three candles, the first candle will be red and after that the second candle will be small, like a doji candle, this candle can be both bearish and bullish, but the candle that will be formed after this will be a bullish candle, so this is what happens (Morning Star Candle), this is a bullish reversal pattern.
Morning Star Candlestick Pattern / How to trade on it?
Whenever the market is in a downtrend and is making lower lows and you see the Morning Star candlestick pattern near any support or near the trendline then you can take the trade here without any fear. If it is formed on the 15-minute time frame then you can take the intraday trade and if the same is formed on the daily time frame or on the 4-hour time frame, then you can plan a swing trade. Your stoploss will be the candle low and you can hold the target until the low of the pullback candle is broken.
This was some of my knowledge about the Morning Star candlestick pattern. I hope you liked it. You can also read more posts to learn about the stock market on stock bhoomi. Thank you.
