Shooting Stars Pattern

Morning Star Candlestick Pattern

Morningstar candlestick pattern is yet another multiple candlestick pattern. It indicates a bullish reversal if it is formed after the price has declined significantly. Additional confirmation will be the price closing above the high of the Bullish green candle.

This pattern has three candlesticks. The first is a bearish candle, the second can be a Doji/Spinning bottom, and the third is a bullish candlestick.

Like in the above patterns, the first candle indicates the continuation of the downtrend, and the third candlestick indicates that the bulls are back in the market. In between these two, the second candle depicts the indecision in the market.

The Doji/Spinning bottom should be completely out of the real bodies of the first and third candles.

On forming the last candle, the traders should wait for the price to close above the pattern's high as an additional confirmation of a bullish reversal trend.

Evening Star Candlestick Pattern

The bearish evening star candlestick pattern is a multiple-stick pattern formed after an uptrend to signify bearish reversals.

The first candle, a bullish one, indicates the continuation of the uptrend, and the third candle indicates an impending bearish reversal. The middle can be a doji/spinning top representing indecision in the market.

The evening star pattern is considered a very strong indicator of future price declines. So a trader may decide on whether to hold on to his securities or sell them off depending on that.