Pattern Type: Reversal (bullish / bearish)
Definition:
A three-candle reversal formation. Morning Star appears at the bottom; Evening Star at the top.
Key Characteristics:
- First candle: large, in the direction of the trend
- Second candle: small (Doji or spinning top)
- Third candle: strong opposite candle closing inside the first body
How to Trade:
Trade after the third candle closes.
Mistakes:
- Skipping confirmation
- Using in sideways markets
Conclusion:
A powerful reversal signal, especially when supported by volume and levels.
