The Morning Star candlestick pattern is a favorite candlestick formation among price action traders. The Morning Star pattern is similar to the Morning Doji Star candle pattern with the exception of the middle candle.
This pattern is a three candle bullish reversal pattern that is reliable, accurate, has a strong price breakout and can be frequently found on most price charts and time frames.
The Morning Star candlestick pattern most often appears at the bottom of downtrends.
The first candle is a large full bodied bearish candle.
The next candle is much smaller, its body gaps below the close of the first candle, and can be either a bullish or bearish candle.
The third and final candle is a large bullish candle that gaps up above the body of the middle candle and must close at least halfway into the body of the first candle.
The Morning Star pattern is exceptionally reliable with an accuracy rate of 78% according to Bulkowski. This pattern also has a strong breakout and can be found on most time frames in any market. Take note of this high performing candlestick pattern.