The morning star candlestick pattern is considered to be a fairly strong price action reversal signal. Many traders find this pattern reliable enough to consider it their favorite trading setup. Morning Star Pattern forms after a significant price fall. It is a three Candlestick Pattern. You would need to see the fourth Green candlestick of follow up buying as a confirmation signal of expected stock price rise.
Top of the wick of the third candle is entry. Lowest low of the Doji is stop loss. The difference doubled is target.
