Candlestick patterns are key of Success in future trading If you learn to trade on candlesticks pattern trading will be easy for you.
Morning Star
The Morning Star candlestick pattern is formed by three candles.
Hereâs how to identify the Morning Star candlestick pattern:
The first candle must be bearish
The third candle must be bullish
The second candle must be small compared to the others, like a Doji or a Spinning Top
The color of the second candle doesnât matter
Ideally, the body of the second candle shouldnât overlap with the bodies of the other two candles
It looks like this on your charts:
This 3-candle bullish candlestick pattern is a reversal pattern, meaning that itâs used to find bottoms.
For this reason, we want to see this pattern after a move to the downside, showing that bulls are starting to take control.
The success rate of this pattern is 78%.
When a Morning Star candlestick pattern appears at the right location, it may show:
The end of a downtrend and start of an uptrend
The end of a pullback, resuming an uptrend.
White Marubozu
The White Marubozu candlestick pattern is formed by one single candle.
Hereâs how to identify the White Marubozu candlestick pattern:
One single bullish candle
The body must be big
The wicks should be small or non-existent
This 1-candle bullish candlestick pattern is a reversal pattern, meaning that itâs used to find bottoms.
For this reason, we want to see this pattern after a move to the downside, showing that bulls are starting to take control.
The success rate of this pattern is 71%.
When a White Marubozu candlestick pattern appears at the right location, it may show:
The end of a downtrend and start of an uptrend
The end of a pullback, resuming an uptrend.
Hereâs an example of a chart showing a trend reversal after a White Marubozu candlestick pattern appeared:
