Morning Star
The Morning Star is a three-candle bullish reversal pattern. It begins with a strong bearish candle, followed by a small-bodied "star" candle showing indecision, and completes with a strong bullish candle that closes above the midpoint of the first candle's body. The pattern tells a story: sellers dominate (candle 1), then hesitate (candle 2), then buyers take over (candle 3). It's one of the most respected reversal patterns in candlestick analysis.
Morning Star candlestick pattern diagram
Pattern Anatomy
- Candle 1: A strong bearish candle with a large body — sellers in full control
- Candle 2 (the "star"): A small-bodied candle relative to candle 1, showing indecision
- Candle 3: A strong bullish candle that closes above the midpoint of candle 1's body
- Candle 3's body must be substantial relative to candle 1's body, showing real conviction
- Traditional definitions require gaps between candle 1→2 and 2→3, but Engulfy's detection is tuned for modern markets where gaps are less common
How to Interpret
- One of the strongest bullish reversal signals in candlestick analysis
- Most significant after a sustained downtrend — signals potential reversal
- The star candle shows the balance of power shifting from sellers to buyers
- Volume increasing on candle 3 is strong confirmation of the reversal
- Best when appearing at a known support level
How Engulfy Detects the Morning Star
- Candle 1 must be bearish (Close < Open)
- Candle 2 (star) must have a small body relative to Candle 1
- Candle 3 must be bullish (Close > Open)
- Candle 3 must close above the midpoint of Candle 1’s body
- Candle 3’s body must be substantial relative to Candle 1’s body (showing real conviction, not a weak bounce)
Engulfy's detection is tuned for modern markets where gaps are less common, making the pattern detectable across all asset types including crypto.
Expert References
- Steve Nison, Japanese Candlestick Charting Techniques — considers the Morning Star one of the most significant reversal patterns. The name comes from the planet Venus, which appears in the sky just before sunrise — a harbinger of light after darkness.
- Thomas Bulkowski, Encyclopedia of Candlestick Charts — found Morning Star patterns act as bullish reversals approximately 78% of the time, making it one of the more reliable candlestick patterns.
- Engulfy ranks this among its highest-priority patterns.
Controversy & Limitations
- The relaxation of gap requirements is debated — purists insist gaps are essential for a true Morning Star pattern
- The specific body size thresholds for the star and candle 3 are implementation-specific and vary between charting platforms
- Three-candle patterns are slower to form, meaning the move may already be partly underway by the time the pattern completes