Bullish Morning Star Pattern

BULLISH MORNING STAR PATTERN (BMSP)
The sellers cannot drive the market lower

Characteristics:
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.

Brief Explanation:
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.

Notes:
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).