Morning Star XAUUSD Candle Pattern, Evening Star XAUUSD Candle Pattern & Engulfing XAUUSD Candle Pattern

Morning Star Candlestick

Trading Analysis of the Morning Star Candle Pattern

Morning star pattern is a three day bullish price reversal candlestick pattern.

The first day is a long black candle.

The second day is a morning star that gaps away from the long black candle.

Third day is a long white candlestick that fills the gap.

The filling of the gap & closing of the white candlestick above the gap is a strong bullish.

Traders should open a buy position after the market closes above the gap setup of the morning star candle pattern. This is the confirmation signal of the buy signal derived and generated by this morning star candle pattern.

Evening Star Candlestick

Evening star candle is the in the opposite market trend of morning star candlestick.

Technical Analysis of Evening Star Candlestick Pattern

Evening star pattern is a three day bearish price reversal candlestick pattern.

The first day is a long white candlestick.

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

Third day is a long black candlestick that fills the gap.

The filling of the gap and closing of the black candlestick below the gap is a strong bearish.

Traders should open a sell trade position once the market prices close below the gap setup of the evening star candle pattern. This is the confirmation trading signal of a sell signal derived & generated by this evening star candle pattern.

Engulfing Pattern

Engulfing pattern is a reversal candle setup which can be bullish or bearish depending upon whether it occurs at the end of a market down-trend or at the end of a market up-trend.<

Technical Analysis of Bullish and Bearish Engulfing Patterns

The colour of the first candle indicates the trend of the day.

The second candle should completely engulf the first candle & it should have the in the opposite market trend color.

For Bullish Engulfing color of the candlestick should be BlueFor Bearish Engulfing the color of the candle should be Red

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