What is the Morning Star/ Evening Star Candlestick Pattern?

The Morning Star and Evening Star are three-candlestick reversal patterns. The Morning Star is associated with a potential “bullish reversal” after a decline, while the Evening Star is associated with a potential “bearish reversal” after a rise. 

Let’s understand in detail:

A) Morning Star Candlestick Pattern

Generally, a Morning Star consists of:

1. A large bearish candle.
2. A small-bodied candle showing reduced directional movement.
3. A large bullish candle that closes well into the body of the first candle.

This pattern potentially indicates a shift from selling pressure toward buying pressure. Usually, traders examine support, volume, and the third candle’s strength before interpreting the pattern as a potential reversal.

B) Evening Star Candlestick Trading

An Evening Star is the bearish counterpart of the Morning Star. It usually consists of:

1. A large bullish candle.
2. A small-bodied candle.
3. A large bearish candle that closes well into the body of the first candle.

The pattern potentially indicates a shift from buying pressure toward selling pressure (after an upward price move). Usually, traders assess the pattern with the prevailing trend and subsequent price action.

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