📊 Signal
Bullish reversal
A downtrend, a small indecision candle, then a strong green recovery.
🕯️ Anatomy
Big red → star → big green
The middle 'star' gaps down, then a green candle closes well into the first red body.
📍 Forms after
A downtrend
A classic bottoming pattern at the end of a decline.
✅ Reliability
Strong
Three-candle reversals are among the more reliable — especially with volume.
Trading Rules — Morning Star
01Three acts. Capitulation (red), indecision (star), then recovery (green).
02The star. A small body — ideally gapping away from the first candle — marks the turn.
03Deep recovery. The third candle should close at least halfway up the first red body.
04Morning doji star. If the star is a doji, the signal is even stronger.
05Confirm & enter. Buy on the third candle's close, stop below the star's low.
For educational purposes only. Not financial advice. Always manage risk with position sizing and never risk more than you can afford to lose.