The Morning Star is a candlestick formation made up of three candlesticks. We’ll use daily candlesticks in the following examples (not monthly, weekly, or hourly).The Morning Star begins with a red Bearish candlestick, indicating that the sellers are gaining ground. A Spinning Top, Doji, or Hammer/Pin Bar must be next in line. The second candlestick denotes irresolution and a certain halt to the downward Trend.In this particular formation, the third and final candlestick pattern is a green, Bullish candlestick that must close at the top 40% of the first red, Bearish candlestick. Following this Bullish confirmation, a buy trade can be placed at the start of the next candlestick.
The Evening Star
The Evening Star reports:The Evening Star is also made up of three candlesticks. In this example, we will only use daily candlesticks.The Evening Star begins with a green Bullish candlestick, indicating that buyers are accelerating. A Shooting Star, Doji, or Spinning Top must be next in line.The second candlestick denotes irresolution and an inevitable halt to the upward Trend. In this particular formation, the third and final candlestick pattern is a red, Bearish candlestick that must close at the bottom 40% of the first green, Bullish candlestick. Following this Bearish confirmation, a selling trade can be initiated at the start of the next candlestick.