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Morning and Evening Star

Morning and Evening Star patterns stand out easily due to the long bodied candles involved. These are reversal patterns also. The nice thing about all of these reversal patterns are that they tend to give you a “heads up” before you get a signal from an indicator below the chart. Then you can get further confirmation through an indicator below the price chart or by the breaking of a trend line which is even more important.

The Evening Star is found at the top of an up move. It has a long bullish candle followed by a higher small candle, then followed by a very long down/bearish candle reversing. Since this pattern involves two very long bodied candles, it makes it easy to spot on the chart.

The Morning star is the exact reverse. It’s found at the bottom of a down move. It has a very long red bodied candle. Then it has a lower candle that’s small followed a long bodied up candle. Again, this is easy to spot due to the beginning and ending extra long bodies to the pattern. See an example below on the chart of Ebay.

Chart Example



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The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.