01. Morning Star :
This is a candlestick pattern consisting of three candles indicating an uptrend.
When a recession is established, it consists of a red candle that accompanies the current downward trend of the previous day.
The next day the price opens downwards in the gap and on that day the price stays in a limited range and closes.
On the third day, the price opens in the gap with the correction and closes with the correction when the long green candle of the bulls is formed.
This third-day candle is seen closing or coming up around the center of the first-day candle.
This trend seems to be accelerating after the signal of reversal.
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02. Evening Star :
This is a candlestick pattern consisting of three candles indicating downward momentum.
The first of these candles is the long green candle that comes with the current upward momentum or an uptrend.
The next day the price gap opens upwards. But closes in a very short range. Whether the closing price of the second day is bullish or bearish, but this price is higher than the closing price of the first day.
On the third day, there was a big drop in prices. For this, the candle of that day is a long candle of recession.
The closing of the third day's candle falls in the middle of the first day's candle or below it.
This will help you to anticipate a downward momentum.
As seen in the chart above, the price is declining after the formation of the Evening Star.
At this time the price and also the negative divergence are formed which supports the coming decline.
03. Shooting Star :
This is a reversal pattern. This is a small candle in which the upper shadow is at least twice as long as the main body.
The color is not very important in this candle. But if a red or black candle is formed, it is said to give a stronger sign of downward momentum.
Looking at this candle, it appears that the price has improved following the strong trend the next day after opening but the price is unable to reach the high level of that day.
As shown in the chart above, on the day a shooting star is formed, the price opens upwards like a bullish move. But before the market closes, prices do not sustain their improvement and close at a loss.
This is a clear indication that fast bowlers are weak in their attempts to accelerate.
If the price opens the next day with a weak opening, work can be done by selling.
Thank You...
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