Sample graph : Morning star candle stick pattern explained
we have taken last 3 month stock trading of SBI, in the yellow color we marked morning start candle stick pattern.
What is morning star candle stick pattern ?
Its a 3 candle stick pattern (Multiple candle stick pattern) which denotes 3 successive days.
for example apr 21 2022, apr 22 2022, apr 23 2022 in each candle.
Its a trend reversal pattern.
How and where to check morning star candle stick pattern?
Check whether the morning star candle stick pattern is formed after a downtrend.
In morning star candle pattern
1. The first candle will a bearish one
2. The second candle will be either a doji or spinning top, here the color may be green or red
if its green then its a good indicator to buy
The second candle should be a gap down opening, ie the opening value should be lesser than first candle closing value.
3. The third one must be a bulish candle and opening should be gap up opening.
What morning star candle stick says?
Its a entry point for short term or long term.
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