$XEC Is One Monthly Candle Away From Completing a Morning Star: When to Enter a Trade ❓️
The Morning Star pattern is a bullish candlestick pattern that signals a potential reversal of a downtrend. It consists of three candles and typically forms at the bottom of a downtrend.
1. Look for the first candle, which is a large bearish candle indicating sellers are in control.
2. Identify the second candle, which is a small-bodied candle that gaps down from the previous candle, showing market indecision.
3. Confirm the pattern with the third candle, a large bullish candle that closes well into the body of the first candle, signaling a shift from bearish to bullish momentum.
Entry Strategies:
1. Enter a long position after the third bullish candle closes to confirm the pattern.
2. Wait for the price to break above the high of the third candle to confirm the bullish reversal.
