Morning Star and Evening Star

Star patterns show a trend running out of fuel across three periods rather than one. Candle one continues the trend, candle two stalls it, candle three reverses it. Because the pause is visible in the middle, these are among the most reliable reversal shapes on higher timeframes.

• Definition: a large bearish candle, then a small-bodied candle (any colour, often a doji or spinning top) that closes near the lows, then a large bullish candle closing well into the first candle's body — ideally past its midpoint.
• Psychology: heavy selling, then sellers stop pressing and nobody takes over, then buyers step in with size. The middle candle is the moment supply dried up.
• Where it forms: at the end of a downtrend, at support, at the completion of a measured move, or at the low of a session.
• What usually happens next: a swing low is set and price works up to the previous minor high. The bigger the third candle relative to the first, the more decisive the turn.

• Definition: a large bullish candle, then a small-bodied candle at the highs, then a large bearish candle closing well into the first body.
• Psychology: strong buying, then hesitation at the top with no new buyers, then sellers taking the level apart.
• Where it forms: at resistance after an extended rally, into a prior swing high, and after a parabolic leg where the middle candle is often a shooting star or doji.
• What usually happens next: a rotation down to the origin of the last leg. Late buyers from the first and second candles are trapped and become sellers.

• Confirmed morning star: a fourth candle closes above the high of the three-candle pattern.
• Confirmed evening star: a fourth candle closes below the low of the pattern.
• Rejected: price closes beyond the extreme of the middle star candle in the trend's original direction — the pause was just a pause.
• Quality filter: the third candle should close past the midpoint of the first. A shallow third candle turns the pattern into indecision, not reversal.