Glossary / Candlesticks

Morning star

An educational concept. Not a signal, not a strategy, and not a trade Josh has taken.

A row of sculptural candlesticks: solid teal up candles and translucent red down candles, with wicks and no prices.
Illustration of the idea, not a market chart and not a result.

Three candles after a decline: a long down candle, a small-bodied candle (the "star") that trades lower, and a long up candle that closes above the midpoint of the first body.

How traders use it: Read as selling stalling then buyers taking over. Invalidation is commonly below the star's low.

Common mistake: Calling it when the third candle is weak or closes in the lower half of the first body.

Related: Evening star · Doji · Bullish engulfing

See this term in the full glossary · All terms

Concepts only. Education only, not financial advice. No pattern on this site has a published win rate.