Three candles, one story: strong move, pause, reversal.
Morning star (bullish)
- Long red candle (sellers in control).
- Small candle, often gapping lower (indecision).
- Long green candle closing deep into the first candle (buyers take over).
Evening star (bearish)
The mirror image after a rally: long green, small pause, long red.
Wick says
The morning star is literally the sun coming up after a dark downtrend. The evening star is the lights going out on the party.
Pro tip
The deeper the third candle closes into the first, the stronger the signal. Past the midpoint is good. Past the open is excellent.
Key takeaways
- Long candle, small candle, long opposite candle.
- Morning star = bullish reversal; evening star = bearish.
- Strongest at key levels with a decisive third candle.