A Morning Star is a set of the following candles (in sequence):
1. A long bearish candlestick
2. A star below it (either bullish or bearish)
3. A bullish candlestick that closes within the body of the first candlestick
The first candlestick in the Morning Star pattern shows the bears in control. The star hints at a transition to a bullish market.
Finally, the strength of the last candlestick confirms the bullishness.
How do we trade it?
Buy above the last bar of the Morning Star formation