Morning star and evening star

What it is

A morning star (bullish) is a big red candle, then a small candle that barely moves (the 'star'), then a big green candle that closes well into the first candle's body. An evening star is the bearish mirror image at the top of a move.

How to spot it

• Three candles: strong, small, strong in the opposite direction.
• The third candle should close at least halfway into the first one's body.

How to use it

• Look for it at support, resistance or a zone after an extended move.
• Stop beyond the star's wick.

Common mistakes

• Accepting a weak third candle that barely recovers.
• Trading it against a strong higher-timeframe trend with no level behind it.

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