A three-candle bottom: a large bearish bar, a small indecisive bar, then a large bullish bar that closes well into the first body. Momentum shifts from sellers to buyers.
How to identify it
- Large bearish candle in a decline
- Small-bodied middle candle, often gapping lower
- Third candle bullish and closes past the midpoint of the first
Entry
Buy on the close of the third candle or above its high.
Stop loss
Below the low of the middle candle.
Target
The top of the first candle and the prior swing high.
Invalidation
A close below the middle candle low.
Does it work for you?
Textbook reliability means little until you know your own numbers. Tag your morning star trades in TradeZento and it shows your win rate, average win and loss, and P&L per trade for this pattern, so you know whether to keep it in your playbook.