A Morning Star is three candles: a long down candle, a small-bodied candle that gaps lower (the star), and a long up candle that closes well into the first candle's body. It maps the transition from selling, to indecision, to renewed buying.
How traders read it
- Read it as a reliable bullish reversal after a downtrend.
- The deeper the third candle closes into the first, the stronger it is.
- The small middle candle can be a doji for extra emphasis.
See it in dtcharts
Turn on candlestick pattern detection in the dtcharts terminal — every morning star is marked on the chart with its historical reliability score, so you can judge how often it has actually played out.