Morning Star Candle Pattern - Engulfing Candle-sticks Patterns
Morning Star Bullish Candlestick - Evening Star Bearish Candlestick - Bullish and Bearish Engulfing Candlesticks Pattern
Morning Star Candle
Morning Star Candle Pattern
Analysis of Morning Star Trading Pattern
Morning star candlestick pattern is a three day bullish reversal pattern.
First day is a long black candlestick.
Second day is a morning star that gaps away from the long black candlestick.
Third day is a long white candle that fills the trading gap.
Filling of the gap and closing of the white candle above the trading gap is a strong bullish signal.
Traders should open a buy trade after market price closes above the gap formation of the morning star. This is confirmation signal of a buy signal generated by this Morning Star Candlestick pattern.
Evening Star Trading Candle-stick
Opposite of the morning star
Evening Star Candle Pattern
Analysis of Evening Star Candle Pattern
Evening star candlestick pattern is a three day bearish reversal pattern.
The first day is a long white candlestick.
The second day is evening star that gaps away from the long white candlestick.
Third day is a long black candle that fills the trading gap.
Filling of the gap and closing of the black candle below the gap is a strong bearish signal.
Traders should open a sell trade once the market closes below the trading gap formation of the evening star. This is confirmation signal of a sell signal generated by this Evening star candlestick pattern.
Engulfing Pattern
Engulfing is a reversal candle pattern which can be bearish or bullish depending upon whether it appears at the end of a market downwards trend or at the end of a market upwards trend.
Bullish and Bearish Engulfing Pattern
Analysis of Bullish & Bearish Engulfing Candle Patterns
The colour of the first candlestick indicates the trend of the day.
The second candlestick should completely engulf the first candlestick and the candle-stick should have the opposite color.
For Bullish Engulfing Candlestick the color of the candle should be Blue
For Bearish Engulfing Candlestick the color of the candle should be Red
