← Back to Pattern Index
Morning Star
Signal
Bullish
Win Rate
72%
Avg Move
+9.0%
Reliability
High

Pattern Definition

The morning star is a three-candle bottom reversal: a large bearish candle, a small-bodied candle gapping down, then a large bullish candle closing more than 50% into the first candle's body.

Market Psychology

Bears gradually run out of energy at the lows. The small middle candle's gap shows bears tried to continue but lacked conviction; the large bullish candle confirms bulls have firmly taken over.

Trading Application

Reliable bottom-reversal signal after a downtrend (win rate 72%). Enter long after the third bullish candle closes. Stop-loss below the middle candle's low.

Important Notes

The bullish candle must close more than 50% into the first bearish candle. Gaps strengthen the signal.