Community Forex Questions
Can a Morning Star appear in an uptrend?
A Morning Star can appear in an uptrend, but it carries a different meaning than when it forms after a clear decline. In a strong uptrend, the pattern does not act as a major bullish reversal. Instead, it signals a short-term pause in momentum and a possible continuation of the existing trend. Traders sometimes call this a continuation Morning Star because it shows temporary selling pressure that fails to break the broader trend structure.

When this pattern appears during an uptrend, the first candle usually reflects a brief pullback. The second candle shows hesitation, often forming a small body that suggests sellers are losing control. The third candle closes higher and confirms that buyers are ready to push the trend forward again. This sequence shows that the market tested lower prices, found support and returned to buying strength.

Confirmation becomes more important in this scenario. Traders look for a strong close above the midpoint of the first candle, support from moving averages or increased volume on the bullish candle. These clues help separate genuine continuation setups from weak reactions inside a choppy market.

Although the Morning Star can appear in an uptrend, it should not be traded purely as a reversal signal. It works better when it aligns with the trend, supports a bounce from a support zone and shows renewed demand after a short correction.

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