Morning Star, Evening Star, and Engulfing Bitcoin Candles Explained

Morning Star Bitcoin Candle

Morning Star Candle - Bitcoin Trading

Analysis of Morning Star Candle Pattern

The Morning Star candlestick formation signifies a three-day pattern indicating a bullish reversal.

First day is a long black candlestick.

Second day is a morning star which gaps away from the long black candlestick.

Third day is a long white candle which fills the gap.

Filling of the gap and closing of the white candle above the market gap is a strong bullish signal.

BTCUSD traders should open a buy trade after the market price closes above the gap - formation of the morning star candle pattern. This is the confirmation trading signal of the buy trading signal generated/derived by this morning star candle-stick pattern.

Evening Star Bitcoin Candle

The Evening Star candlestick formation represents a market reversal signal opposite to that of the Morning Star candlestick.

Evening Star Candlestick - Bitcoin Trading

Analysis of Evening Star Bitcoin Candle Pattern

Evening star candle is a 3 day bearish reversal candlestick pattern formation.

First day is a long white candlestick.

The second day is the evening star which gaps away from long white candlestick.

Third day is a long black candle stick which fills the gap.

Filling of the gap and closing of the black candle below gap is a strong bearish signal.

When the market values are below the trading gap configuration of the evening star candle pattern, bitcoin traders should initiate a sell trade. This evening star candlestick pattern creation produced or derived a sell signal, and this is the verification trading signal.

Engulfing Candle Pattern

The engulfing candle pattern is a reversal formation that can be either bearish or bullish, depending on whether it appears at the end of a downward or upward market trend.

Engulfing Candle Pattern - Bitcoin Trading

Analysis of Bullish & Bearish Engulfing Candle Patterns

Color of the first candle demonstrates trend of the day.

The second candle should completely cover the first one, and the candle should be a different color from the current market trend.

If it is Bullish Engulfing, the candlestick should be Blue: if it is Bearish Engulfing, then the candlestick needs to be Red.

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