Morning and Evening Star Candlestick PatternThe morning star candlestick pattern is composed of three candles the first being a long bear candle which represents more sellers than buyers, the second being a doji candle which means the selling has slowed and the market is being indecisive and the third being a bullish candle whose body at least reaches half way up the first bear candles body. An evening star pattern is the same just reversed. In an up trend the first candle in this formation is a long bearish candle, the second an indecisive doji and the third a bearish candle that closes at least half way back down the body of the first bull candle in this pattern. So in other words the first candle represents selling pressure, the second indecision amd the third decision, in this case buyers have outnumbered sellers and the price is headed back up. Candle pattern formations are known as "leading edge" indicators because they tend to predict market turns before they happen as opposed to technical indicators which are used to confirm reversals. Many traders rely soley on Patterns like the morning and evening star to base their trading decisions. The video below illustrates a both a morning and evening star candlestick pattern.
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