Morning Star XAUUSD Candlestick Pattern, Evening Star XAUUSD Candle Pattern & Engulfing XAUUSD Candlestick Pattern
Morning Star Candlestick
Technical Analysis of Morning Star Pattern
Morning star is a three day bullish reversal candlestick pattern.
The first day is a long black candlestick.
The second day is a morning star that gaps away from the long black candlestick.
Third day is a long white candlestick that fills the gap.
The filling of the gap and closing of the white candle above the gap is a strong bullish trading signal.
Traders should open a buy trade after market price closes above the gap formation of the morning star candlestick pattern. This is the confirmation signal of the buy signal generated by this morning star candle pattern.
Evening Star Candlestick
Evening star candlestick is the opposite of the morning star candlestick.
Technical Analysis of Evening Star Candle Pattern
Evening star is a three day bearish reversal candle pattern.
The first day is a long white candlestick.
The second day is the evening star that gaps away from the long white candlestick.
Third day is a long black candlestick that fills the gap.
The filling of the gap & closing of the black candlestick below the gap is a strong bearish trading signal.
Traders should open a sell trade once the market prices close below the gap formation of the evening star candle pattern. This is the confirmation signal of a sell signal generated by this evening star candlestick pattern.
Engulfing Pattern
Engulfing pattern is a reversal candlestick pattern that can be bearish or bullish depending upon whether it appears at the end of a market downtrend or at the end of a market uptrend.
Technical Analysis of Bullish & Bearish Engulfing Patterns
The color of the first candlestick indicates the trend of the day.
The second candlestick should completely engulf the first candle and it should have the opposite 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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