#Morningstar

In a morning star, three candles demonstrate a fairly clear shift in sentiment.

The first, a long red stick, shows that a bear trend is continuingThe second has a short body – indecision is undermining the trendThe third is a long green stick, as a reversal form

The key candle here is the one right in the middle. Typically a spinning top, this is an indication that the downward trend is coming to an end. If the middle candle is a doji, then the signal is seen as even stronger.

To verify that you’ve got a morning star, check that the third candlestick crosses the mid-price of the first.