Morning Star Bullish
How to Identify it
- First day is a long black day
- Second day is a small day that gaps in the direction of the previous trend
- The third day is a white day
What it Means
In a downtrend, the market bolsters the bearish trend with a long black day
and gaps open on the second day. However, the second day trades within a small range and closes at or near its
open. This scenario generally shows the potential for a rally, as many positions have been changed. Confirmation
of the trend reversal is given by the white third day.