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Nikita (SEBI RA)

21st Aug 2025 · SEBI-Registered Analyst

Morning Star – The Bullish Reversal Pattern

📊 A Morning Star is a 3-candle formation indicating bearish-to-bullish reversal. ✅ Structure: 1️⃣ Big Bearish Candle – strong selling pressure. 2️⃣ Small Candle/Doji – indecision, selling slows. 3️⃣ Big Bullish Candle – buyers take full control. 📌 Example: A stock falls from ₹420 → ₹400 (big red candle), next day Doji at ₹398, then green candle closes at ₹410 with high volume → Morning Star confirmed. 🧠 Rule: Works best when formed near a strong support zone + confirmed with volume.

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