Morning Star Candlestick, Evening Star Candlestick & Engulfing Pattern Candlestick

Morning Star Candle

Technical Analysis of Morning Star Pattern

Morning star is a three day bullish 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.

Traders should open a buy trade after market price closes above the gap formation of the morning star candle pattern. This is the confirmation signal of the buy signal generated by this morning star candlestick pattern.

Evening Star Candle

Evening star candle is the opposite of the morning star candlestick.

Technical Analysis of Evening Star Candle Pattern

Evening star is a three day bearish reversal candle pattern.

First day is a long white candle.

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

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

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

Traders should open a sell trade once the market prices close below the gap formation of the evening star candlestick pattern. This is the confirmation signal of a sell signal generated by this evening star candlestick pattern.

Engulfing Pattern

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

Technical Analysis of Bullish and Bearish Engulfing Patterns

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

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

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

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Morning Star Candlestick, Evening Star Candlestick & Engulfing Pattern Candlestick