The Morning Star candlestick pattern is a powerful bullish reversal pattern that often occurs at the bottom of a downtrend. The pattern consists of three candlesticks.

Morning Star candlestick pattern

The first candlestick of the Morning Star reversal pattern is a large bearish red candle. On the first day, bears are in control and are making new lows.

The second candlestick begins with a bearish gap down. At the beginning of the second candlestick, bears are still in control. However, bears are unable to push prices much lower than the low of the first candlestick. The second candlestick is small and can be bullish, bearish, or a neutral Doji.

The third candlestick begins with a bullish gap up, and bulls are able to push prices even further upward, usually eliminating the losses seen on the first candlestick.

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