The Morning Star pattern consists of a bearish candle, a small-bodied middle candle, and a bullish candle, forming at the end of a downtrend to signal potential reversal. This pattern reflects a shift from seller dominance to buyer strength, as the middle candle marks a pause before a reversal. The Morning Star is a reliable signal that buyer interest is reemerging.
Understanding Morning Stars helps traders anticipate shifts in momentum, providing valuable entry points for new uptrends. The Chart Guys offer detailed guidance on interpreting Morning Stars and incorporating them into a trading strategy.
