P
PipsGrowth

Key Takeaways

Success Rate:78%
Difficulty:Intermediate
Strength:
R:R Ratio:1:2.5

Morning Star

bullish reversalVery High Reliability3 Candles

A three-candle reversal pattern consisting of a long bearish candle, a small-bodied candle (gap down), and a long bullish candle closing into the first candle.

Market Psychology

Selling pressure exhausts, indecision occurs, then buyers take full control, signaling a major shift in sentiment.

Candle Structure

1st2nd3rd

Trading Setup Example

Entry, stop loss, and take profit levels.

How to Trade the Morning Star PatternTake Profit📥 EntryStop LossPatternConfirmEnterBUYPatternConfirmEnterSL/TP

Always wait for pattern confirmation before entering a trade.

Where This Pattern Appears

Trend context and market position.

DowntrendMorning StarReversal ↑

Appears at the bottom of a downtrend, signals bullish reversal.

How to Identify

1

First candle: Long bearish candle in a downtrend

2

Second candle: Small body that gaps below first candle (star)

3

Third candle: Long bullish candle closing above midpoint of first candle

4

Gaps are ideal but not mandatory in forex

Confirmation Signals

RSI oversold (<30)
At key support level
Volume increase
Bullish next candle

Trading Strategy

📥 Entry

Enter long at close of third candle or on next candle confirmation

🛑 Stop Loss

Place stop below the star (middle candle) low

🎯 Take Profit

Target previous swing highs or 1:2 risk-reward

⚖️ Risk/Reward

1:2.5

Common Mistakes to Avoid

Trading without prior downtrend
Not waiting for confirmation
Ignoring volume
Setting stop too tight

Pro Tips

💡Third candle should close at least 50% into first candle body
💡Doji as the star increases reliability
💡Volume pattern: high-low-high confirms the reversal

Best Timeframes

DailyWeekly

Pattern Variations

At support level (stronger)
With gap open
آخر تحديث: ٢٩ ديسمبر ٢٠٢٤

إخلاء مسؤولية تعليمي

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Frequently Asked Questions