- This is a three star candle pattern.
- It gives bullish signal
- After such pattern is formed there is higher probability of share prices going up.
Few conditions to be met for morning star:
- Shares should be in down trend
- Red candle should be formed first
- Next small body with equal distant wick should be formed, color can be green or red.
- 3rd green candle should be formed which should be same as the first red candle or larger than it
Once all these criteria are met you get the confirmation that it is a morning star pattern. After this formation you can take the entry. One more thing to note, if you see green small body and then rest of the pattern, it is than considered more effective.