Morning Star Bitcoin Candlestick, Evening Star Bitcoin Candlestick and Engulfing Pattern Bitcoin Candlestick

Morning Star Bitcoin Trading Candle

Morning Star Candle - Bitcoin Trading

Technical Analysis of Morning Star Candlestick Pattern

Morning star candlestick pattern is a three day bullish reversal candlestick pattern.

First day is a long black candlestick.

Second day is a morning star that gaps away from long black candle.

Third day is a long white candle which fills the gap.

Filling of the gap and closing of the white candlestick above the gap is a strong bullish trading signal.

Bitcoin traders should open a buy trade after market price closes above the gap - formation of the morning star candlestick pattern. This is the confirmation signal of the buy signal generated by this morning star candlestick pattern.

Evening Star Bitcoin Trading Candle

Evening star candlestick is the opposite of the morning star candlestick.

Evening Star Candlestick - Bitcoin Trading

Technical Analysis of Evening Star Bitcoin Candlestick Pattern

Evening star candlestick is a three day bearish reversal candlestick pattern.

First day is a long white candle.

The second day is the evening star which gaps away from long white candlestick.

Third day is a long black candle which fills the gap.

Filling of the gap and closing of the black candle below gap is a strong bearish trading signal.

Bitcoin traders should open a sell trade once the market prices close below the gap formation of the evening star candlestick pattern. This is the confirmation signal of a sell signal generated by this evening star candlestick pattern.

Engulfing Candlestick Pattern

Engulfing candlestick pattern is a reversal candlestick pattern which can be bearish or bullish depending upon whether it appears at the end of a market downtrend or at the end of a market uptrend.

Engulfing Candle Pattern - Bitcoin Trading

Technical Analysis of Bullish and Bearish Engulfing Patterns

Color of the first candle indicates trend of the day.

The second candle should completely engulf the first candlestick & it should have the opposite color.

For Bullish Engulfing the color of the candlestick should be BlueFor Bearish Engulfing the color of the candlestick should be Red