The morning star candlestick pattern is a reliable predictor of the downtrend’s lowest point. These patterns are sought after by both price action traders and trend watchers. It’s time to act whenever they do, after all. To help you identify the Morning Star chart pattern and trade it on the Kotex platform, this article has been produced.
How to recognize the morning star pattern?
Three candles make up the Morning Star pattern, which, as I said at the outset, shows up at the bottom of the current downtrend.
The first candlestick is usually a huge red one. This denotes a significant price decrease brought on by the bears’ aggressive trading.
The Doji pattern’s second candle will be this one. It displays the bulls’ activities. A modest price increase is the outcome. A very small body and the candle’s two sides define this doji candle. The candle’s low frequently coincides with that of the preceding bearish candle.
The pattern’s third candle is a sizable green candle, indicating that buyers mobilized to seize control of the market and drive the price up.
morning star pattern reading
You can anticipate the bulls joining the fight soon when the bears have been in charge of the market’s direction for a time. A Doji candle in the midst of the motif initially symbolizes their conflict. The bulls then prevail, and the trend turns around.
You can easily observe when the price hits some support levels after a big red candle appears in the USD/JPY currency pair’s above chart. A big green candle forms after a period of hesitation caused by the bulls’ activity.
When you recognize the morning star pattern, you should only trade when it breaks the top of the doji candle or when the following green candle demonstrates that the price has obviously moved higher. There is a direction change. Trading should be done for at least 15 minutes. The minimum time frame over which you should place your trade is 15 minutes because each candle in the aforementioned example corresponds to a 5-minute time window.
Now that you are aware of the Morning Star pattern’s appearance and operation. Get a free trial account and try trading using this strategy. Describe your experience for us. Use the space below for comments.
