What is a morning star pattern?
Why is this a Bullish Reversal Pattern? During the first day the bears are still in control and are still pushing the stock down lower. During the second day it shows that the downward pressure is slowing down and may actually reverse. Finally on the last day the bulls take control of the market and push it back up.This indicates that the bulls have officially taken control of the market and are trying to push it up higher. Another thing you want to remember is that the bullish rally should be bigger than the bearish crash in the beginning of the pattern. If the bullish rally is not bigger it may not be as powerful of a signal. Other Candlestick Patterns There are a variety of other candlestick patterns available. Here are a few of them. Ladder Bottom - A more complex bottoming pattern Three White Soldiers - A bullish continuation pattern Marubozu - The simplest continuation pattern |
