Bullish Morning Star Pattern
BULLISH MORNING STAR PATTERN (BMSP)
The sellers cannot drive the market lower
1. Market is on a downtrend;
2. Day 1 has a long black stick;
3. On Day 2, we see a small body gapping in the direction of the previous downtrend; and
4. Day 3 has a white candlestick.
In this pattern, we see the black body in a falling market. This suggests that the bears are in command. Then we see a small body implying that the sellers cannot drive the market lower. Day 3’s strong white body proves that the bulls have taken over.
An ideal BMSP has a gap before and after the middle stick. The second gap is rare, but its absence does not remove the power of this formation.
1. There may be more than one, two or three stars
2. The color of the star and its gaps are not important
3. The pattern’s reliability is high, but a confirmation is suggested (through a white stick with a higher close or a gap-up).