The Ultimate Guide to Morning Star Candlestick Patterns

Last updated: January 4, 2024

Morning Star Pattern

The morning star candlestick can signal a potential reversal from a previous downtrend. The pattern is made up of three candles: after a bearish candle, a star (which could be green or red) occurs on a gap down day, which is followed by a bullish candle that drives the price back within the body of the initial bearish candle:

Chart

General Identification & Interpretation

Steve Nison is credited with bringing Japanese candlestick charting to the West. In his book "Japanese Candlestick Charting Techniques" he describes morning star patterns with the following characteristics:

Typical characteristics

• First candle shows strong bearish activity with an extended red body
• Second candle shows gap down day (star pattern)
• Third candle shows strong bullish activity, closing within the body of the first candle.

Examples of use as a trading indicator

• Potential bullish reversal signal after a downtrend
• Support level near the lows of this pattern

More for beginners

Check out our quick start guide to candlestick charting for more information if you are new to candlestick charting!