Here’s a recent Ethereum $ETH candlestick snapshot highlighting a classic Bullish Morning Star setup (three-day pattern):
1. Large bearish candle — strong downside pressure.#Ethereum
2. Small indecision candle (often a Doji) — market hesitation.#Ethereum
3. Powerful bullish candle that closes into at least the midpoint of the first — a signal of trend reversal .
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🎯 Trade Setup $ETH
Entry (Long):
Place your buy order just above the high of the third candle — this confirms bullish momentum.
In this chart, that’s around $2,600–$2,620.#Ethereum
Stop‑Loss:$ETH
Just below the low of the indecision (second) candle, safeguarding against false signals.
Take‑Profit:
Set target around next resistance, roughly $2,700–$2,750 — based on recent highs and trend lines.
You can also aim for a 2:1 reward-to-risk ratio for disciplined exits.
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📊 Middle Candle Profit Example
If price quickly rallies after entry, you can scale out in phases. E.g.:
Exit 50% of your position when the price hits the midpoint of your overall target (around $2,650).
Let the remaining run for further gains. #Ethereum
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🧠 Strategy Summary
Stage Price Level Notes
Entry $2,600–$2,620 Above third candle high
Stop‑Loss Below second candle low Limits downside risk
Partial Exit ~$2,650 Secures profit early
Final Take‑Profit $2,700–$2,750 At next resistance or 2R
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✅ Why It Works
Morning Star patterns are known reversal indicators .
Confirmation above candle highs ensures momentum has shifted.
Risk defined by stop‑loss ensures disciplined position sizing.
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⚠️ Important Tips
Volume Confirmation: Higher volume on the third candle strengthens the signal.
Confirm with Indicators: Check RSI/Stochastics for oversold signals or trend alignment.
Manage Risk: Don't risk more than 1–2% of your trading capital on a single setup.