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Morning Star:
It appears at the bottom of the trend, after a significant fall in price.
Volume should be high. This indicates the reversal of trend.
Long position can be created the next day when the price crosses the Star’s high.
Evening Star:
It appears at the top of the trend, after a significant rally in price.
Volume should be high. This indicates the reversal of trend.
Short position can be created the next day when the price crosses the Star’s low.
The morning star is a reversal pattern to the upside that can be found at the end of a downtrend.Long position can be created when the price crosses the stars high.
The evening star pattern is viewd as a bearish revesal pattern.It usually occurs at the top of an uptrend.Short position can be created the next day when the price crosses the strs low.
Morning Star:
- It is a bullish candlestick pattern that consists of three candles.
- It appears after a negative trend.
- The third candle opens higher than the close of the second day.
- Long position can be created at the top of DOJI’s upper tail.
Evening Start:
- It is a bearish candlestick pattern that consists of three candles.
- It appears after a positive trend.
- The third candle is a larger candle that opens below the middle candle and closes near the center of the first candle body.
- create short position at the end point of the DOJI’s lower tail.
when doji appears after major price fall it said to be morning star and when it appears after major price rise it is evening star . create long position after after morning star and short after evening star.
Morning star:
It appears after a dark night (recent price fall) but gives a bright day that shows positive.
Volume should be high to indicate a trend reversal
I can buy the stock on the next day if the price goes above the DOJI high
I can sell the stock on the next day if the prices goes below the DOJI low.
Evening Star:
It appears after a bright day (recent price increase) but gives a dark night that shows negative price movement
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