HomeFinanceWhat is Morning Star Candlestick Pattern: Benefits and Uses

What is Morning Star Candlestick Pattern: Benefits and Uses

If you are someone new into the stock market, you would have wondered about the morning star candlestick pattern. Morning star candlestick pattern is an important pattern of price fluctuations in the stock market. These candlestick patterns show signs of an upward trend when securities prices fluctuate. The name Morningstar comes from the fact that this pattern looks like a star in the morning sky. Three candles are lined up, and the middle candle is upside down. Traders usually see a pattern of morning star candlesticks after a downtrend. After that, traders usually expect the price of securities to start to rise. Therefore, it is clear why it is known as a price pattern reversal. The Morningstar candlestick pattern is essential for traders who love trading in the stock market. Usually, you monitor the pattern to see the price trend reversal.

How to identify Morning Star Candlestick Pattern?

The Morning star candlestick pattern has three candlesticks. After a large green candle, there is a short red candle above or below / between both shadows (the shadow indicates previous price fluctuations) and a white candle that opens and closes lower than the body. Close to the opening price. In most cases, bullish morning star candles carry a sustained uptrend that can last for days or weeks, while bearish morning star candles indicate the possibility of further declines. The pattern alone does not predict the direction, but weighs the public opinion of the buyer and the seller to show when the pass was decided.


There are lot of benefits for a morning star stick pattern. Some of them are:

  • The Morningstar candlestick pattern is a visual pattern, so traders may not have to rely on multiple calculations to understand it.  
  • Morningstar candlestick patterns are easy to find. As you can see above, finding the morning star pattern is relatively easy.  • 
  • Though no pattern is cent percent accurate, Morningstar tends to run precise. 
  • Candlestick patterns can be used on all assets, including currencies and stocks. 
  • This can be used with other inversion indicators such as double exponential moving averages.  
  • Morning star pattern is common in the forex market and offers trading opportunities. 
  • The most interesting thing about Morningstar Candlesticks is that you can trade with great success in all market conditions, from sideways to trending markets. When the Morningstar candlestick indicator appears, it is advisable to wait for the trend reversal to be confirmed. In this way, you can increase your chances of winning and avoid whipping saws. 
  • Morningstar candles may indicate a stock price trend reversal or future price trends. The morning star-shaped candlestick looks like an upside-down and upside-down version. One has a small body and a long core, and the other has a short core but a relatively long body. 

Uses of Morningstar Candlestick Pattern

One way to use the Morningstar pattern is to analyse multiple time frames. This means looking for the morning star over a longer period of time and then zooming out for a shorter period of time to determine the entry point. One will be able to confirm the signal with other indicators. As mentioned earlier, Morningstar is a bullish pattern, so it only provides a buy signal. 

Eveningstar Candle Stick Pattern

The evening star candlestick pattern is also a reversal pattern. There are three candles in the pattern. It forms at the top of the uptrend. The first candle is a long and bullish candle. The second candle is a small and indecisive candle. The third candle is a long, bearish candle. During the uptrend, it is observed that high optimism leads to strong buying. The first candle formed will be long and bullish. Indecisiveness between the buyer and the seller forms the second candle. Expectations for negative stock news in the market form a third candle and it will be long and bearish. If trading volume increases and prices fall, this indicates a reversal of the trend. These patterns are used for trend detection. If the Morningstar pattern is used as a buy signal, evening star candle stick pattern is used as a sell signal. It is better to use a combination of bullish flag pattern and indicators to determine the trading strategy.



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