Investor Pattern Recognition Morning Star
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Morning Star In A Nutshell
The first candle is a large bodied bearish candle that has minimal wicks. This could be an indication that the market still is under a general consensus. The second candle is similar to a doji, which is a small body and small wicked candle that is still bearish. However, this could signal that the market sediment could be shifting. The third and final candle is a large bodied bullish candle with a small lower wick and minimal upper wick, indicating a strong market move to the upside.
Candlestick patterns litter the investing community and some are better than others while others are easier to identify. The objective of identifying a candlestick pattern is to signal to the trader or investor that a potential shift in the market could be near. With that, the morning star pattern is a signal using technical analysis that the market may be shifting from a bearish pattern to a bullish pattern. Morning star utilize not one, but three candles in its pattern.
Closer Look at Morning Star
These candlesticks alone are not enough to determine a market trend. You should also be comparing these candles to the volume levels. If the volume levels are rising, that could mean more new money is entering that particular market and the movement is supported. Also be sure to use other tools to help confirm the movement. Fundamental analysis in this situation could expose what was said that motivated the move. Either way, be sure to use this as an alert rather than an indicator as a for sure movement. MacroAxis has a plethora of tools to help zero in your trading and investing strategies.
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Most technical analysis of Investor Education help investors determine whether a current trend will continue and, if not, when it will shift. We provide a combination of tools to recognize potential entry and exit points for Investor from various momentum indicators to cycle indicators. When you analyze Investor charts, please remember that the event formation may indicate an entry point for a short seller, and look at other indicators across different periods to confirm that a breakdown or reversion is likely to occur.Cycle Indicators | ||
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