It is made of 3 candlestick, first being a bearish candle, second a doji and third being a bullish candle.
The first candle shows the continuation of the downtrend, the second being a doji indicates indecision in the market, and third bullish candle shows that the bulls are back in the market and reversal is going to take place.
The second should be completely out of the real bodies of the first and third candles.
Traders can enter a long position if the next candle a bullish candle is formed and can place a stop-loss at the low of the second candle.
1. The valid Morning star Candlestick pattern is formed at the end of the downtrend
2. The Pattern is made up of three candlesticks.
3. The first candle should be a long body red candle then the middle candle should be Doji Candle (preferably gap-down) and the third candle should be a long body green candle.
4. If the volume of the third green candle is more than its previous candles, that would be an added advantage.
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