Morning Star / モーニングスター
Reference values based on Bulkowski's "Encyclopedia of Chart Patterns". Data is primarily from U.S. markets and may differ for other markets.
A three-candlestick reversal pattern appearing at the bottom of a downtrend. Composed of a large bearish candle, a small-bodied candle (star), and a large bullish candle. Ideally, the star has gaps from adjacent candles. It marks the turning point where selling exhausts and buyers take control.
Enter long at the open of the next candle after the third bullish candle is confirmed. Verify that the third candle recovers to at least the midpoint of the first candle's body.
Project the total range of the pattern (from the first candle's open to the second candle's low) upward from the third candle's close. Or target the nearest resistance line.
Place a stop-loss slightly below the second candle's (star) low.
Ideally, high volume on the first candle, decreased volume on the second (reflecting indecision), and surging volume on the third.