Morning Star
The morning star is a three-candle bullish reversal pattern consisting of a bearish candle, a small-bodied candle, and a bullish candle, signaling a bottom.
Buy Now - ₹6,599 for Lifetime Buy Now - $159 for Lifetime7-day money-back guarantee
How to Identify
The first candle is a large bearish (red) candle in a downtrend
The second candle is a small-bodied candle (doji or spinning top) that gaps down
The third candle is a large bullish (green) candle that closes above the midpoint of the first candle
Volume typically increases on the third candle confirming buying pressure
The pattern appears after a sustained downtrend
Trading Rules
Entry Rules
- Enter at the close of the third candle or the open of the following candle
- Confirm the third candle closes above the midpoint of the first candle's body
- Verify the pattern forms at a known support level or demand zone
Exit Rules
- Place stop-loss below the low of the second candle (the star)
- Target the nearest overhead resistance level
- Trail stops as the reversal unfolds
Target the starting point of the downtrend that preceded the pattern. Alternatively, use the combined range of all three candles as a minimum measured move.
Place stop-loss below the lowest point of the three candles, which is typically the low of the second (star) candle.
Success Rate
72% according to Bulkowski
Success rates vary based on market conditions, timeframe, and trader experience. Always validate patterns with your own journal data.
Journaling Tips
Record the size of each candle relative to each other for pattern quality assessment
Note whether the star candle had a gap, gaps strengthen the pattern
Track the volume progression across all three candles
The morning star is one of the most respected reversal patterns in candlestick analysis. Its three-candle structure provides a complete narrative of trend exhaustion and reversal.
The Three-Act Story
Act 1 (First candle): A large bearish candle shows sellers are in control. The downtrend is strong and apparently set to continue.
Act 2 (Star candle): A small-bodied candle shows the selling momentum has stalled. This is the indecision point where the balance of power begins to shift.
Act 3 (Third candle): A large bullish candle shows buyers have taken control. When this candle closes above the midpoint of the first candle, the reversal is confirmed.
Quality Assessment
Not all morning stars are created equal. Rate the pattern quality based on:
- First candle size: Should be a full-bodied bearish candle, not a small one
- Star position: Gaps below the first candle add significance
- Third candle strength: Must close above the first candle’s midpoint, ideally near its high
- Volume pattern: Increasing volume from the star to the third candle
- Context: Pattern forming at a strong support level
Gap Considerations
Traditional morning stars require gaps between the candles. In 24-hour markets like forex and crypto, true gaps are rare. Most traders accept the pattern without gaps if the other criteria are met. On stock charts with daily gaps, the classic gapped morning star remains the gold standard.
Trading Execution
Entry point: The close of the third candle is the standard entry. Some traders wait for the next candle’s open for additional confirmation. The tradeoff is slightly worse entry price for higher confirmation.
Stop placement: Below the star candle’s low. This is where the reversal would be invalidated.
Target: The start of the preceding decline is the primary target. Morning stars that form at major support often produce moves that exceed this initial target.
Journal Analysis
Record the full three-candle sequence with specific attention to the relative sizes and any gaps. Track your success rate with morning stars versus other reversal patterns to determine which setups deserve your capital. Your personal data always matters more than textbook statistics.
Common Mistakes
Entering after the second candle before the bullish third candle confirms
Accepting a pattern where the third candle does not close above the first candle's midpoint
Trading morning stars during strong downtrends where the reversal is unlikely to hold
Frequently Asked Questions
What is the difference between a morning star and an evening star?
A morning star is a bullish reversal at the bottom of a downtrend. An evening star is a bearish reversal at the top of an uptrend. They are mirror images with opposite implications.
Does the star candle need to gap?
In traditional candlestick analysis, gaps between the candles strengthen the pattern. However, in modern markets (especially forex and crypto that trade 24 hours), gaps are less common and the pattern can still be valid without them.
Can the star candle be a doji?
Yes. When the middle candle is a doji, the pattern is called a morning doji star and is considered an even stronger reversal signal because the doji represents complete indecision.
Start Tracking Your Patterns
Journal every pattern trade to discover which setups actually work for you.
Buy Now - ₹6,599 for Lifetime Buy Now - $159 for Lifetime7-day money-back guarantee