The candlestick of the second day is small and can be bearish, bullish, or neutral (or Doji). This time, bears do not push the prices to a much lower position. It is clear from the start of day 2 that bears are in control. The second day starts with a bearish gap down. The first part of the morning star reversal pattern is a big bearish red candle that appears on the first day they are definitely in charge and make new lows. Remember, don't trade if you don't know your stats. He then summarizes which one is THE best pattern. There he will take you through the extensive backtesting of the 26 main candlestick patterns.
#MORNING STAR CHART PROFESSIONAL#
Joe Marwood (who's a famous trader with more than 45 000 Twitter followers) created an online course called "Candlestick Analysis For Professional Traders" in his Marwood Research University. If you want to learn more and deep dive into candlestick patterns performance statistics, I strongly recommend you follow the best available course about it. Keep in mind all these informations are for educational purposes only and are NOT financial advice. Anyway, make sure to use proper risk management. A trading strategy relying solely on this pattern is not advised.
On average markets printed 1 Morning Star pattern every 682 candles.įor 2:1 R/R trades, the longest winning streak observed was 10 and the longest losing streak was 19.
We analysed 4120 markets for the last 59 years and we found 22 863 occurrences of the Morning Star pattern.
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