technical

Morning Star

A three-candle candlestick pattern that signals a potential reversal from a downtrend to an uptrend. It comprises a long down-day candle, a small-bodied day that gaps down, and a following long up-day candle that closes into the first candle's price range (often above its midpoint).

Example: On a daily chart, a long down-day candle is followed by a small-bodied day that gaps down, and a long up-day candle closes into the first candle's range, suggesting a potential reversal from the prior downtrend.

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