How to recognize the Morning Star candle?

First candle: a long bearish candle continuing the downtrend. Second candle: a small body that gaps down from the first, a doji or a small candle (Spinning Top). Third candle: a large bullish candle that closes above the midpoint of the first body.

Is the Morning Star candle bullish or bearish?

A bullish reversal pattern made of 3 candles. Confirmation: built into the pattern. Its reference success rate is 72%. Spot it yourself on live daily candles for any symbol in the subscriber technical terminal.

Bullish signal ▲ · pattern 17

Morning Star

The Morning Star (Morning Star) is a three-candle bullish reversal that appears at the bottom of a downtrend. The first candle is a large bearish one. The second has a small body (or is a doji) and gaps down, showing hesitation at the lows. The third is a large bullish candle that closes above the midpoint of the first body.

PATTERN ID

Signal Bullish ▲

Reliability ★★★★★

Win Rate 72%

Expected move +5–12%

Timeframe Daily / weekly

Confirmation Built into the pattern

The short answer

What is the Morning Star candle?: The Morning Star (Morning Star) is a three-candle bullish reversal that appears at the bottom of a downtrend. The first candle is a large bearish one.
How to recognize the Morning Star candle?: First candle: a long bearish candle continuing the downtrend. Second candle: a small body that gaps down from the first, a doji or a small candle (Spinning Top). Third candle: a large bullish candle that closes above the midpoint of the first body.
Is the Morning Star candle bullish or bearish?: A bullish reversal pattern made of 3 candles. Confirmation: built into the pattern. Its reference success rate is 72%. Spot it yourself on live daily candles for any symbol in the subscriber technical terminal. Open the technical terminal →

Pattern illustration

Bearish → doji (indecision) → bullish candle that crosses the midpoint

How to identify the pattern

Step-by-step checks

First candle: a long bearish candle continuing the downtrend
Second candle: a small body that gaps down from the first, a doji or a small candle (Spinning Top)
Third candle: a large bullish candle that closes above the midpoint of the first body
Trading volume rises on the third candle, which is the actual confirming candle

Trading psychology

The power struggle between buyers and sellers

Three acts of a reversal: defeat (candle 1, heavy selling), hesitation (candle 2, a standoff at the lows), then reversal (candle 3, bulls take firm control). Each act spans consecutive sessions, which makes it one of the clearest reversal structures.

Outlook and confirmation

Entry conditions and expected price move

Confirmation is built in: the confirming candle is part of the pattern

One of the more reliable reversal signals in technical analysis. Expect +5–12% within 7–14 days. Candle 3 is the built-in confirmation, so no extra candle is needed.

Ideal setting for the pattern

All markets

Suggested timeframe: daily / weekly

Where to find it on the platform

Session summary · Today's lesson for members
After each session closes, we classify the daily candle of SPY by its shape. When it takes this shape, its name appears there along with its body and shadow ratios.
Technical terminal for members
Shows the daily-timeframe candles for any symbol on the platform's list. You identify the pattern by eye: the terminal does not name it.

How it is traded in practice

A star in three acts: a strong decline, then a small-bodied hesitation, then a bullish turn that wins back half of the first candle or more. The third candle close is the confirmation built into the pattern itself, so there is no extra wait as with single-candle patterns. The stop-loss goes under the low of the middle candle (the lowest point of the pattern). Most references rank it among the more reliable patterns when its conditions are met at support.

Common mistake

Tolerating a weak third candle: a weak third that does not reach the midpoint of the first turns the star into a mere pause in a continuing decline. Rushing at the second candle: entering on the hesitation candle is a bet on a pattern that has not finished. The difference between a real star and a temporary pause in the decline is exactly the third candle.