Morning star
Down candle, small pause, up candle
What it is
Three candles at the end of a decline: a full down candle, then a small-bodied candle that gaps or stalls below it, then an up candle closing well into the body of the first. The middle candle is the handover — selling that had been one-directional stopped for a period.
What it may suggest
A change of control over three periods rather than one. At a level that already mattered it may suggest the sellers who drove the decline have finished.
Where it fails
Three candles is a lot of chart to spend on one signal, and the third one is most of the move — by the time the shape is complete, the entry is already worse. It also prints repeatedly inside downtrends that keep going.
Also called morning star pattern, three candle reversal.
More candlesticks
- Evening starUp candle, small pause, down candle
- Inside barA candle contained entirely by the one before it
- DojiOpen and close nearly equal: indecision
- HammerLong lower wick, small body up top
- Shooting starLong upper wick, small body at the bottom
- Bullish engulfingAn up candle that swallows the previous down candle
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