One of the most powerful bullish reversal setups: The Morning Star ⭐ It forms after a sustained move lower and shows momentum shifting from sellers back to buyers. The 3-candle structure: 1. Strong bearish candle 2. Small-bodied candle showing indecision 3. Strong bullish candle closing back into the first candle’s range What I look for before entering: - A clear prior downtrend - The third candle reclaiming an important level - Increased volume on the reversal - A retest of the pattern before entry (varies given market conditions) The low of the pattern gives you a clear invalidation level, which can make the risk-to-reward very attractive. Important: A Morning Star alone is not enough. The location matters more than the pattern. Bookmark this for the next time price is approaching support. 🔖
NebraskangoonerShare
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.