The morning star is a reversal pattern, usually formed at the end of a .
In orderWhat is a trade order? In trading, an order can be defined... More to be valid:
- The first (1) has to be a candle which is still part of the recent downtrendWhat is a downtrend in trading? When the price of an asset... More.
- The second candle (2) must have a very small body, indicating some indecision in the market. It can be either bearish or .
- The third candle (3) gives you the confirmation of a reversalWhat is a trend reversal? A trend reversal is when the mark... More, as it closes beyond the middle of the first candle.
Further reading
Read more about trading using Japanese candlesticksJapanese candlesticks are a way of showing information on a... More:
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