Bullish reversal

Morning Star

A three-candle bottom: a big red candle, a small indecisive 'star', then a big green candle — the reversal takes hold.

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DownStarUpDown · star · up
How the pattern looks on a chart

What it is

The first candle continues the downtrend, the middle small candle (the star) shows selling exhaustion, and the third strong bullish candle closes well into the first candle's body, confirming buyers have taken over.

What it signals

It marks a potential bottom and shift to an uptrend. The deeper the third candle closes into the first, the more convincing the reversal.

How to spot it

Three candles: large bearish, small-bodied star (often gapping lower), then a large bullish candle recovering much of the first. Look for it after a sustained decline.

One caveat

Never trade a single candle in isolation. It only carries weight with context — location at a key level, the prevailing trend, and confirmation from the next candle or from volume. On its own it is a hint, not a signal.

Related terms

Evening StarBullish EngulfingHammerTrend

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