Morning & Evening Star
Overview
The morning star is a three-candle bullish reversal: a large bearish candle, a small body candle (the star) that gaps down, and a large bullish candle that closes well into the first candle's body. The evening star is the bearish mirror. These are among the strongest candlestick reversal patterns.
Key Concepts
Three-candle formation, Gap between candles 1-2 and 2-3 (gaps may not appear in forex/crypto 24h markets), Star candle shows indecision, Third candle confirms reversal
Entry Signals
Morning star at significant support / weekly demand zone, Evening star at resistance / supply zone, Third candle closes beyond midpoint of first candle's body, Volume increases on the third candle
Exit Signals
Stop below morning star's lowest point / above evening star's highest point, Target the start of the prior trend move, Use Fibonacci extensions for profit targets
Best Timeframes
4H, Daily, Weekly
Pro Tips
In 24-hour markets like crypto and forex where true gaps are rare, look for 'quasi-gaps' where the star candle opens near the prior candle's close but creates a visible separation.
More Topics in This Category
Pin Bar Setups
Pin bars are single-candle reversal patterns with a long tail (shadow) on one side and a small body on the opposite side. The tail shows a sharp rejection of a price level. Pin bars are the most widely used price action signal among naked chart traders and work on all markets and timeframes.
Bullish & Bearish Kickers
The kicker pattern is one of the most powerful two-candle reversal signals in candlestick analysis. It forms when the second candle opens at or beyond the open of the prior candle and moves aggressively in the opposite direction, effectively 'kicking' away from the previous sentiment. Kickers often occur after overnight news events or fundamental catalysts that cause an abrupt sentiment shift.
Three-Line Strike Patterns
The three-line strike is a four-candle pattern where three consecutive candles move in one direction, followed by a single large candle that engulfs all three. Despite appearing as a reversal, statistical analysis shows the bullish three-line strike actually has a high probability of continuing the prior uptrend, making it a continuation signal. The bearish variant behaves similarly as a continuation of the downtrend.
Harami Patterns
A harami (Japanese for 'pregnant') is a two-candle pattern where a small candle is completely contained within the prior candle's body. A bullish harami appears in downtrends; a bearish harami in uptrends. Haramis signal fading momentum but require confirmation before trading.