Morning Star - Rule Book

Rule Book: Morning Star

1) Forms in downtrend setup

2) Three Candlestick Pattern

3) First Candle is has red real body

4) Second Candle gaps down having small real body or doji (either colour)

5) Third Candle has the green real body, ideally gapping up from the second candle and close near to the high of first candle

6) Entry Level for intra day - open on fourth day should be near the closing of third day

a) 50% at the closing of the third candle
b) 50% at the 50% level of third candle with the SL of low of second candle

For delivery,
a) 50% at the 50% level of third candle with the SL of low of second candle
b) 50% at the 75% level of third candle


Examples are discussed on our Youtube Channel. Click here to view the same

[11/3, 1:13 AM] Ganesh Baser EqTech-1422: Morning Star -  Stock movued up from 235 to 260

Evening Star -  Stock moved down from 255 to 225 levels

[11/3, 1:14 AM] Ganesh Baser EqTech-1422: 12th oct morning star formed... 23rd oct evening star