Morning Star & Evening Star in Forex
Three candlesticks consist of Morning and Evening Star formation. For your convenience, we will mention the following examples in daily candles:
The Morning Star gives traders an indicator that a downward trend hits a reversal point and has the following features:
A bearish candlestick that reflects the acceleration of the selling.
Followed by a candlestick that represents indeterminacy and a sudden stop to the downward acceleration. Either this may be:
The last candlestick is a bullish candlestick that closes the candlestick within a range of 40% above the first bear.
Importance of Morning Star in Forex
- The red candlestick shows that the downtrend is intact and that bears are dominant.
- It provides further evidence of the selling pressure when the second candlestick gaps down.
- The third long bullish green candle gives bullish reversal confirmation.
The Evening Star shows us that the bullish trend is approaching to reversal point. A candlestick of bullish that represents the buying acceleration. A candlestick is followed that means indecision and the upward progress suddenly stops. Either this may be:
The last candlestick is a bearish candlestick that closes the candlestick within a range of 40% below the first bear.
Importance of Evening Star in Forex
- The green candlestick shows that the Uptrend is intact and that bulls are dominant.
- It provides further evidence of the buying pressure when the second candlestick gaps up.
- The third long bearish red candle gives bearish reversal confirmation.