The Morning Star is a bullish three-candlestick reversal pattern that forms after a downtrend: a long bearish candle is followed by a small-bodied candle that gaps lower, and then by a long bullish candle that closes well into the body of the first one. The middle candle reflects indecision as selling dries up, and the third candle shows buyers taking control, which often marks a bottom.
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Candlestick Basics
Are you candlestick-literate? The widely used candlestick chart is easy to read but also contains some less obvious but valuable
clues about momentum and reversal.
Candlesticks, Japanese - Technical Analysis from A to Z
In the 1600s, the Japanese developed a method of technical analysis to analyze the price of rice contracts. This technique is called candlestick charting. Steven Nison is credited with popularizing candlestick charting and has become recognized as the leading expert on their interpretation. I have met investors attracted to candlestick charts by their mystique - maybe they are the "long-forgotten Asian secret" to investment analysis.
Candlestick Basics
Candlesticks, Japanese - Technical Analysis from A to Z