PART3❤️‍🔥

Three Candlestick Patterns

These are patterns that provide signals composed of three price candles, which indicate a potential reversal zone for the current market trend or a signal for the continuation of the current price trend. Three candlestick patterns often provide strong signals for the upcoming movement as the confirmation comes from three candles over three consecutive time periods.

1- Morning Star Pattern (Reversal)

This is a reversal pattern consisting of three price candles that forms at the end of a downtrend, where the first candle is the last candle in the downtrend and is a bearish candle. The second candle is formed with a small body, and it is preferable to have a price gap to increase the strength of the pattern. The third candle is a bullish candle and its closing price is above the midpoint of the first bearish candle.

The Morning Star pattern forms when the price reaches a point of indecision and uncertainty about the direction after a downtrend, then the price begins to recover, which is considered a signal of a price movement reversal upwards..