Morning Star Bullish
Characteristics:
– Downward trend.
– Black candlestick is a continuation of the downward trend from the day before.
– Open and close are about the same price. Small body or none.
– Third day confirms bullish trend. White candles should be half the black candles.
Notes:
– The longer the black and white candles the greater the indecision.
– The longer the shadows of the star, the more chance for reversal.
– Gaps before and after the star increase the chances of reversals.