Star Patterns

The star patterns are the most common and among the most effective patterns in candlestick. They consist of a three candle pattern. The middle candle is flanked by two long bodied candle of opposing colors. It does not matter what color the middle candle but it must meet two criteria. One it should be small body candle. Two it should leave a gap with the first candle. A gap with the third candle is not necessary but would show strength of the next move it present. The third candle must penetrate significantly into the body of the first candle and should be of the opposing color as the first one. The greater the penetration, the better the pattern. The three together are knows as the star. Depending upon its position in the trend, it is either known as a Morning Star (at the bottom) or Evening Star (at the top).

A variant of this is when the middle candle is a doji pattern instead of a small body. In such a case it is called a Morning Doji Star or an Evening Doji star. These patterns show an even greater reversal at hand.

[stextbox id=”grey”]To view Practical Example on Star Pattern Click Here.[/stextbox]