![]() Further, the candles are usually color-coded, with red signaling a decline in price and blue or green signaling a rise. The wicks, or "shadows," indicate the highs and lows of price action during the period represented by the candles. ![]() ![]() When the value is declining, the top of the candle represents the opening and the bottom represents the closing. Remember that when the asset value is rising, the bottom of the candle body will represent the opening price and the top will represent the closing price. To identify a morning star on a chart, it's important to recall the basics of candlesticks and pay attention to the formation of the candle body and two wicks. It can be useful for identifying a buying opportunity, or for helping traders prepare for later buying opportunities as a new bullish trend picks up steam. Like its counterpart, the evening star, the morning star pattern will appear as a cross-like star formation at the finalisation of a price trend ahead of a reversal. ![]() The "morning star" is the name for an easily recognisable bullish pattern in candlestick charts that appears at the end of a price downtrend signaling the beginnings of a move upward. In this moment of doubt, the morning star pattern can offer a clear cut signal that a bullish reversal lies immediately ahead. A downtrend in the market can be a good time to buy an asset, but traders are frequently confronted by uncertainty over whether the market will continue its selling momentum and exactly where it will bottom out. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |