What is Morning star?
Tong yulduzi
In short
A three-candle reversal: a large red candle, a small-bodied one, then a large green candle. Hints that a decline is ending.
Also known as: evening star
A morning star is a three-candle reversal pattern that appears after a decline:
- A large red candle — sellers are still in control.
- A small-bodied candle (often a doji or a spinning top) — the decline slows and the market hesitates.
- A large green candle — buyers take over, usually closing above the midpoint of the first candle's body.
The logic
The pattern shows the balance of power shifting step by step: strong selling, then balance, then strong buying. The deeper the third candle closes into the first candle's body, the stronger the signal. Higher volume on day three adds to the confirmation.
The mirror version
The mirror image after a rally is the evening star: a large green candle, a small body, then a large red candle. It hints that a rally is ending.
Limitations
In US stocks the gaps between candles that the classic definition calls for don't always appear, so most traders accept the pattern without them. A morning star only signals a possible reversal: also check whether the decline sits inside a bigger trend and whether there is support nearby.
A big red candle (closed $50.80), a small "star" (low $49.90) and a big green candle ($52.30 — above the middle of the first body, $51.70). Then three strong green candles in a row — buyers keep the initiative. Volume is highest on the third candle of the star.
Example
Illustrative case: a stock falls from $78 to $70, then:
- Day 1: opens $70.00, closes $65.00 — a large red candle ($5.00 body).
- Day 2: opens $64.60, closes $64.90, low $64.20 — a small body ($0.30).
- Day 3: opens $65.30, closes $68.80 — a large green candle.
Midpoint of day 1's body: ($70.00 + $65.00) ÷ 2 = $67.50. Day 3 closed at $68.80, above the midpoint — the pattern is complete. The stop usually goes below the middle candle's low: entry $68.80, stop $64.00 → risk of $4.80 per share. That is a fairly wide stop, so the position size must be smaller.
Mistakes and tips
If the third candle doesn't close above the midpoint of the first body, treat the pattern as weak.
Three-candle patterns usually mean a distant stop — work out the risk/reward ratio in advance.
Look for the pattern after a clear decline, not inside a sideways range.
Frequently asked questions
- How reliable is the morning star pattern?
- Three-candle patterns carry more information than single candles, but they are still no guarantee. Read them together with levels and volume.
- Does the middle candle have to be a doji?
- No, any small-bodied candle works. When the middle candle is a doji, the pattern is sometimes called a morning doji star.
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