The "Morning Star" and "Evening Star" pattern

The "Morning Star" and "Evening Star" patterns are two popular signals that traders use to analyze market behavior. The "Morning Star" indicates a possible reversal of a downward trend to an upward trend. It is formed from three candles: a long bearish one, a small candle (negative or neutral), and a long bullish one. Conversely, the "Evening Star" signals a reversal of an upward trend to a downward trend and consists of the same structure but with a bearish tilt. These patterns are useful for predicting market direction and help traders make more informed decisions. It is important to consider them in the context of other technical indicators to increase forecast accuracy.