{"id":652377,"date":"2025-03-21T15:30:56","date_gmt":"2025-03-21T14:30:56","guid":{"rendered":"https:\/\/ftmo.com\/?p=652377"},"modified":"2025-04-15T12:21:49","modified_gmt":"2025-04-15T10:21:49","slug":"trading-strategy-using-the-morning-star-pattern","status":"publish","type":"post","link":"https:\/\/ftmo.com\/en\/trading-strategy-using-the-morning-star-pattern\/","title":{"rendered":"Trading strategy using the Morning Star Pattern"},"content":{"rendered":"

The Morning Star pattern is popular among traders because it can relatively reliably indicate a change in sentiment from bearish to bullish. The Morning Star symbolizes that the night (price decline) is ending and the day (price rise) is coming.<\/em><\/p>\n

What does the Morning Star look like?<\/h2>\n

The Morning Star is a formation of three candles<\/strong> that can be identified by the following rules:<\/p>\n

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  1. The first candle<\/strong> is usually a long bearish (red) candle, indicating strong selling pressure.<\/li>\n
  2. The second candle<\/strong> is a small-bodied candle, or a doji candle, which often closes near the low of the first candle. This small candle signals weakening selling power and uncertainty in the market.<\/li>\n
  3. The third candle<\/strong> is a long bullish (green) candle that usually closes above the midpoint of the body of the first (red) candle. Here we see that the buyers have taken control and the price is starting to rise.<\/li>\n<\/ol>\n

    Together, this creates a reversal pattern, which is often found at the end of a downtrend<\/strong>, where the market threatens to not take another big fall and starts to rise.<\/p>\n

    \"\"<\/a><\/p>\n

    How to trade the strategy?<\/h2>\n
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    1. Identifying a downtrend<\/strong>\n