Module 5: Candlestick Patterns · Lesson 32/40
8 min 55 XP
A morning star is a three-act reversal at a bottom: (1) a big down candle (sellers in control), (2) a small indecision candle or doji (the fight balances — the "star"), (3) a big up candle that closes well into the first (buyers take over). It is one of the most reliable bullish reversals. The evening star is the mirror at a top. When the middle candle is a doji it is even stronger (a morning/evening doji star).
Not every three-candle pattern is a reversal — some confirm a move. Three white soldiers are three strong up candles in a row, each opening within the prior body and closing near its high: steady, confident buying, often early in a new uptrend. Three black crows are the bearish mirror. The warning: if they appear after price is already extended, the move may be near exhaustion rather than just beginning — context again.
Why three candles beat one
More candles = more confirmation built into the pattern itself. A single hammer can fail instantly; a morning star already contains its own confirmation (the third candle). That is why three-candle reversals are among the most respected signals.