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Trading glossary · candles

morning star

Three candles after a fall: a big red one, a small one, then a big green one, like sunrise after night.

The fuller meaning

A three-candle bullish reversal pattern after a decline: a long red candle, a small-bodied star below the first body, then a long green candle closing past the midpoint of the first body. In stocks the star often gaps; in 24-hour markets gaps are rare, so the small middle body is what matters.

morning star.

Related words

bearish · bearish engulfing · bearish harami · bearish marubozu · body · bullish · bullish engulfing · bullish harami · bullish marubozu · candlestick