Forex glossary
Morning Star
Morning Star is a structure after a decline: a long bearish candle, a small body in star position and a bullish candle closing above the first body's midpoint. The classic version includes body gaps. Gapless versions on continuous FX markets require separate detection rules and do not guarantee reversal.
Illustrative example
How does it work in practice?
Assume the first candle falls from 110 to 100, the second has a small 98–99 body and the third closes at 106. That final close rises above the first body's midpoint of 105.
A case to work through
A small body without equal open and close
Hypothetically, the first body falls from 90 to 80, the second has O=78 and C=79, and the third closes at 86.
- The first body's midpoint is 85; the third close of 86 is above it.
- The middle body spans 1 and need not satisfy a separate doji tolerance.
What follows? Check the remaining Morning Star rules rather than requiring a doji in every version.
Example boundary: Body-size and classic-gap conditions need explicit criteria.
A useful distinction
Morning Star / Evening Star
Morning Star describes three candles after a decline; Evening Star reverses their directions after a rise.
Check your understanding
Calculate the penetration boundary and distinguish a small body from doji.
Show the answer and explanation
66
The midpoint is 65 and 66 is above it.
Bodies, shadows and context
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Read the fuller explanation
Related terms
Sources and documentation
- TA-Lib – ta_CDLMORNINGSTAR
Original OHLC body/shadow detection code and configurable candle thresholds; implementation is not effectiveness evidence.
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The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.