3 Price-Bars Pattern

Morning Star

• Consists of 3 candlesticks

• Bearish Gap: Bears are in control

  during opening

• Day 2: Prices are not pushed much

  lower (small / neutral candlestick)

  Bullish: stronger sign

• Day 3: Bullish gap up

• Prices pushed further upward,

  sometimes eliminating all Day 1 losses

 Evening Star 

• Consists of 3 candlesticks:

   Bullish, Small/ Neutral, Bearish

• Presence of bullish gap, bearish gap

• Day 2: Prices are not pushed much

  higher

  Bearish: stronger sign

• Day 3: Large bearish candlestick

• Prices pushed further downward,

  sometimes eliminating all of Day 1’s

  gains

Evening Star Pattern