Morning Star |
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Pattern: reversal
Reliability: high
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Identification
A long black day is followed by a small day that gaps in the direction of
the trend. The third day is a white day which closes in the top half of
the black day. The Psychology
In a downtrend or during a pullback within an uptrend, the market gaps
down but enough buyers step in to halt the weakness. The lack of ability
of the bears to press the issue indicates the downtrend may be weakening.
The gap up and rally that closes the white day above the top half of the
black day confirms the reversal if accomplished with a surge in volume.
The bullish Morning Star is similar to the bullish Morning Doji Star,
bullish Abandoned Baby, and bullish Doji Star and could be a continuation
of the bullish Inverted Hammer.
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