Morning Star

Morning Star is a financial term used to describe a candlestick pattern that is used to predict the reversal of a current trend in a stock’s price. The pattern consists of three consecutive candlesticks, with the first being a long bearish candle, followed by a smaller bullish candle, and then a third long bullish candle that closes above the midpoint of the first candle. This pattern is seen as a sign of a potential reversal in the current trend and is used by traders to make decisions about when to enter or exit a trade.

History of the Term

The term “Morning Star” was first used in the late 19th century by Japanese rice traders. The term was used to describe a three-candlestick pattern that was seen as a sign of a potential reversal in the current trend. The pattern was seen as a sign of hope, and the traders believed that the pattern could be used to predict when the market would turn in their favor. Over time, the term has been adopted by traders in other markets, including the stock market, and is now used as a technical analysis tool to help traders make decisions about when to enter or exit a trade.

Comparison Table

Summary

Morning Star is a financial term used to describe a candlestick pattern that is used to predict the reversal of a current trend in a stock’s price. The pattern consists of three consecutive candlesticks, with the first being a long bearish candle, followed by a smaller bullish candle, and then a third long bullish candle that closes above the midpoint of the first candle. This pattern is seen as a sign of a potential reversal in the current trend and is used by traders to make decisions about when to enter or exit a trade. For more information about this term, you can visit websites such as Investopedia, The Balance, and Investing.com.

See Also

• Doji
• Engulfing Pattern
• Harami Pattern
• Hanging Man
• Inverted Hammer
• Shooting Star
• Three Black Crows
• Three White Soldiers
• Tweezer Tops
• Tweezer Bottoms

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