A morning star pattern could be
a bullish reversal signal, and therefore, only occurs when an
established downtrend in price.
A bullish morning star pattern is
a candlestick pattern normally found at the
end of a period of downward. When found in
a downtrend, this pattern is a powerful reversal
pattern.
Identification of bullish Engulfing candlestick Pattern
The first candle is bearish. It happens at the
end of a significant down in a significant.
The middle (second) candle is a small bodied candle (bull or bear).
The second candle is a small indecision candle.
The third candle is a bullish candle that closes
well above the high of the signal candle.
The first day of the Candlesticks pattern is part of the downtrend. The second day gaps lower and has a small body. The second candle is a small indecision candle. The last day is a bull candlestick that closes above the center of the first candle’s body.
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