Forex

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Well, today I am going to share with you the most profitable and popular candlestick pattern i.e Morning star candlestick pattern.

Morning star is a three-star candlestick pattern that gives us a strong warning sign that the ongoing trend is going to end.

Now, you must be wondering why it is called the morning star candlestick pattern?

Well, The morning star candlestick pattern formation is just like the dusk to morning.

In the early ’80s, the traders used to indicate a black candle as a bearish candle and similarly, a green candle as a bullish candle.

See, the formation of the morning star candlestick pattern above.

Firstly we see the sellers domination (Black Candles) and later the buyer’s domination (Bearish candles)  just like dusk to morning.

 

What is the Morning star candlestick pattern?

As said earlier, The morning star candlestick pattern signals the end of the bearish trend.

The morning star candlestick pattern acts as a superhero for the buyers who hold the hand of buyers and end the domination of sellers.

How to Spot Morning Star candlestick pattern?

Here, to illustrate the Morning star candlestick pattern I am going to use Binomo.

If you don’t have a Binomo account click here.

You can sign up via the form given below.

 

Once you click the link above. you will land on the Binomo homepage.

Enter your email, password and hit start trading.

Once you have signed up you will land on the Binomo dashboard.

Now, click on the chart button and select Japanese candlestick from the menu.

That’s it!! The basic setup is over.

Now, what you need to do is first is find a long red bearish candle.

Secondly, find a small body with a small wick.

Lastly, find a strong green candle.

That’s it!! this is how you spot a morning star candle. Here, the second candle is the morning star.

How to Trade with Morning star candlestick pattern?

Trading with a morning star candlestick pattern is very easy.

Let’s check few examples:

Firstly, we need to find a strong bearish candle.

Secondly, find a small body with a small wick.

Lastly, find a strong bullish candle.

That’s it!!! this is how you spot the morning star candlestick pattern.

Once you have spotted the morning star candlestick pattern we should go for a buy trade.

 

How reliable is the Morning star candlestick pattern?

The morning star candlestick pattern is very reliable.

However, If you want to reap the real results from the morning star candlestick pattern then you should use Support and Resistance. to confirm your trade.

Given above is 1 hour chart: Firstly we see a strong bearish candle.

Secondly, we see a morning star candle (a small candle with a small wick.).

Lastly, a big bullish candle.

Here, we should take a buy trade as the morning star candle is near the support level.

Summing Up:

So, Spotting and trading with morning star candlestick pattern is very easy.

You just need to remember How a morning star candlestick is formed?  

• Firstly, we need to find a strong bearish candle.
• Secondly, find a small body with a small wick.
• Thirdly, find a strong bullish candle.
• Lastly, use support and resistance to confirm your trade.

So, this is the end of the article I hope you found this article helpful.

This article was all about What is the Morning star candlestick pattern?, How to Trade with Morning star candlestick pattern?, How to Spot Morning Star candlestick pattern?