The Morning Star candle pattern is a three-candlestick formation that is considered to be a bullish reversal pattern. It is formed at the end of a downtrend and signals that the price may be about to reverse course and start moving upwards.
The pattern comprises a long bearish candlestick, followed by a small candlestick with a short real body that gaps down from the previous candle, followed by a long bullish candlestick. The small candlestick in the middle is often called a "doji" and represents indecision in the market.
As with all technical analysis tools, there is no guarantee that the Morning Star pattern will result in a price reversal. However, when combined with other indicators and analyses, it can be useful for traders to identify potential bullish opportunities.
