Morning Star Candle, Evening Star Candlestick and Engulfing Pattern Candlestick

Morning Star Candle

Analysis of the Morning Star Candle Pattern

Morning star pattern is a three day bullish price reversal candlestick pattern.

First day is a long black candlestick.

The second day is morning star that gaps away from the long black candlestick.

Third day is a long white candlestick that fills the gap.

The filling of the gap & closing of the white candlestick above the gap is a strong bullish signal.

Investors & Traders should open a buy trade after the market closes above the gap setup formation of the morning star candle pattern. This is the confirmation signal of the buy signal derived/generated by this morning star candle pattern.

Evening Star Candlestick

Evening star candlestick is the in the opposite market trend of the morning star candle.

Technical Analysis of Evening Star Candlestick Pattern

Evening star pattern is a three day bearish price reversal candlestick pattern.

First day is a long white candlestick.

The second day is the evening star that gaps away from the long white candlestick.

Third day is a long black candle that fills the gap.

The filling of the gap and closing of the black candlestick below the gap is a strong bearish.

Investors & Traders should execute a sell position once the market prices close below the gap setup formation of the evening star candlestick pattern. This is the confirmation signal of a sell signal generated/derived by this evening star candle pattern.

Engulfing Pattern

Engulfing setup is a reversal candle pattern formation that can be bearish or bullish depending upon if it appears at the end of a market downward trend or at the end of a market uptrend.<

Technical Analysis of Bullish and Bearish Engulfing Patterns

The color of first candlestick indicates the market trend of day.

The second candlestick should completely engulf the first candlestick & it should have the in the opposite trend colour.

For Bullish Engulfing the colour of candle should be BlueFor Bearish Engulfing the color of the candlestick should be Red

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Morning Star Candle, Evening Star Candlestick and Engulfing Pattern Candlestick