Morning Star Patterns

What Are Morning Star Patterns?

3 min read

Morning star patterns are bullish reversal patterns. They are a 3 candlestick pattern that takes place near support levels. The first candle is a bearish candlestick. The second candle is a smaller doji or spinning top that closes below the first bearish candle. The third candlestick is a bullish candle that closes above the second. Look for a break and hold above third candle to complete reversal.

What Are Morning Star Patterns?

A morning star pattern consists of three candlesticks that form near support levels. The 1st candle is bearish, the 2nd is a spinning top or doji, and the 3rd is a bullish candlestick. Typically, the 3rd candle forms a bullish reversal pattern.

These patterns are made up of three candlesticks. This pattern is a bullish reversal pattern. The formation of this pattern may not seem like it should be bullish. Morning stars are a sign of good things to come.

Morning star patterns are formed over three trading days. Consequently, while this may be a bullish pattern, the beginning of it is bearish. This is in keeping with the current trend.

Morning Star Patterns

First candlestick is a large bearish candlestick. The second candle is a candle with a small real body, also known as a doji. This shows indecision. Lastly, the third candle is bullish.

While the third candle should be a large bullish candlestick we know that chart patterns aren’t always perfect. The meaning is still the same though. The bulls are coming back in to take over.

In other words, the bears are fully in control the first day. The second day is an indecision day because the bulls and bears battled and now one took control.

Now the third day the bulls put the smack down on the bears. They win the battle and a new direction is made. There are a couple of signs above the strength of the reversal.

First, the longer the candles the greater the reversal. 

Second, if there is a gap between the first and second day or a gap on either side of the middle candle, the possibility of reversal is even higher. 

Third, the higher the third candle is in relation to the first candle, the greater the bullish takeover.

How to Trade Morning Star Patterns

  • Watch for 1st falling bearish candlestick to form
  • Next, watch for 2nd smaller spinning top or doji candlestick to form
  • Then, watch for 3rd bullish candlestick to break above 2nd
  • Traders take a long position once price breaks above the 3rd candlestick
  • Place stop below the base of the 3rd candle
  • Some traders take a short position once price falls below 3rd candle
  • Then place stop above the 3rd candle

Related Articles

Failed Bear Flag

Failed Bear Flag

A failed bear flag turns into a bullish pattern instead of a bearish one. When learning about flags, a bear flag is always a bearish

Read More »
Heikin Ashi

Heikin Ashi

Have you ever wondered, “What is heikin ashi”? Well, you’re in good company; I had no idea either until I started trading. What I found out

Read More »
Megaphone Patterns

Megaphone Patterns

The megaphone pattern is another chart pattern used for technical analysis. This is one of my favorite patterns because there is usually a lot of

Read More »

FREE ONLINE TRADING COURSES

If you’ve looked for trading education elsewhere then you’ll notice that it can be very costly.

We are opposed to charging ridiculous amounts to access experience and quality information. 

That being said, our website is a great resource for traders or investors of all levels to learn about day trading stocks, futures, and options. Swing trading too! 

On our site, you will find thousands of dollars worth of free online trading courses, tutorials, and reviews.

We put all of the tools available to traders to the test and give you first-hand experience in stock trading you won’t find elsewhere.

Our content is packed with the essential knowledge that’s needed to help you to become a successful trader.

It’s important to treat day trading stocks, options, futures, and swing trading like you would with getting a professional degree, a new trade, or starting any new career.

Invest the proper time into your Trading Education and don’t try to run before you learn to crawl. Trading stocks is not a get-rich-quick scheme. It’s not gambling either, though there are people who treat it this way. Don’t be that person! 

STOCK TRADING COURSES FOR BEGINNERS

The Bullish Bears team focuses on keeping things as simple as possible in our online trading courses and chat rooms. We provide our members with courses of all different trading levels and topics.

If you’re a beginner, intermediate level, or looking for expert trading knowledge…we’ve got you covered. 

We have a basic stock trading course, swing trading course, 2 day trading courses, 2 options courses, 2 candlesticks courses, and broker courses to help you get started. Free.

Just choose the course level that you’re most interested in and get started on the right path now. Become a leader, not a follower. When you’re ready you can join our chat rooms and access our Next Level training library. No rush. We’re here to help.

Click Here to take our free courses.