The candlestick trading bible

 
 
 

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THE CANDLESTICK TRADING BIBLE 
The morning star 
 
The morning star pattern is considered as a bullish reversal pattern, it 
often occurs at the bottom of a downtrend and it consists of three 
candlesticks: 
-The first candlestick is bearish which indicates that sellers are still in 
charge of the market. 
-The second candle is a small one which represents that sellers are in 
control, but they don’t push the market much lower and this candle 
can be bullish or bearish. 
-The third candle is a bullish candlestick that gapped up on the open 
and closed above the midpoint of the body of the first day, this 
candlestick holds a significant trend reversal signal. 
The morning star pattern shows us how buyers took control of the 
market from sellers, when this pattern occurs at the bottom of 

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THE CANDLESTICK TRADING BIBLE 
downtrend near a support level, it is interpreted as a powerful trend 
reversal signal.
See the illustration below: 
The chart above helps us identify the morning star pattern and how it 
is significant when it is formed at the bottom of a downtrend.
As you can see the pattern occurred at an obvious bearish trend. 
The first candle confirmed the seller’s domination, and the second one 
produces indecision in the market, the second candle could be a Doji, 
or any other candle.

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THE CANDLESTICK TRADING BIBLE 
But here, the Doji candle indicated that sellers are struggling to push 
the market lower. The third bullish candle indicates that buyers took 
control from sellers, and the market is likely to reverse. 
This is how professional traders analyze the market based on 
candlestick patterns, and this is how you will analyze financial markets 
if you can master the anatomy of candlestick patterns and the 
psychology behind their formations.