- Strength of the Morning Star
- Morning Star Candlestick Pattern - Catch The Turn | Forex Trading Strategies
- Morning Star Candlestick Pattern – Catch The Turn
- Selected media actions
- Morning Star Candlestick Pattern
Then, if the second candle is green and the volume rises, it indicates the buying pressure.
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- Morning star (candlestick pattern) - Wikipedia?
The high volume on the last candle shows the confirmation of the upcoming buy trend. If the third bullish candle has low volume, then try avoiding that Morning Star Pattern because the volume is not indicating the bullish reversal.
Strength of the Morning Star
If you observe the third candle closing with high volume, take up the buying position and ride the uptrend until there are any indications of a trend reversal. You can confirm the downtrend on a higher timeframe or on your trading timeframe.
The first red candle was with low volume, and the second one was a small red candle. Hence there is no indication to go long in this pair yet.
Morning Star Candlestick Pattern - Catch The Turn | Forex Trading Strategies
The very next was a long green candle with high volume. This is a strong indication of a trend reversal. We should be entering the trade when the next green candle closes. There are so many different ways to book profit. We can close the position at any resistance area or supply-demand zone.
In this trade, we hold our positions because we took the trade from the beginning of a new trend. Pairing this pattern with volume makes it more reliable to trade. So it is a good idea to place the stop loss just below the second candle.
Morning Star Candlestick Pattern – Catch The Turn
This pattern is very easy to identify on the price chart if you are an intermediate trader. Instead, what you have is a Doji! The third candle kind of seals the deal where the buyers step in and push price all the way higher and finally closing near the highs.
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With that said, you should already have a good idea that it's actually a bullish reversal pattern. Whatever the candlestick pattern that you come across, you always have to be prepared that there are many variations to it.
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What I've just shared with you in this candlestick series training video is the ideal textbook pattern. This is why I always go through this visual explanation of who's in control, what's happening, what's going on. And then finally, the buyers took control and closed price and closed near the highs of the candle. Ideally, the best pattern is where the bullish third candle closes above these highs of the first candle.
You will always get thrown off guard whenever the market presents a variation of whatever candlestick pattern that you have memorized. So, let's have a look: A morning star basically is a three-candle pattern.
Morning Star Candlestick Pattern
The filling of the gap and closing of the white candlestick above the gap is a strong bullish Forex signal. Traders should open a buy trade after market price closes above the gap formation of the morning star. This is the confirmation signal of a buy signal generated by this Morning Star Candlestick pattern.
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