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

Morning Star Candlestick

Morning Star Candlestick - Bitcoin Trading

Technical Analysis of Morning Star Candlestick Pattern

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

The first day is a long black candlestick.

The second day is a morning star that gaps away from the long black candlestick.

Third day is a long white candlestick that fills the gap.

The 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 Candlestick

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

Evening Star Candlestick - Bitcoin Trading

Technical Analysis of Evening Star Candlestick Pattern

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

The first day is a long white candlestick.

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

Third day is a long black candlestick that fills the gap.

The filling of the gap and closing of the black candlestick below the 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 that 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 Candlestick Pattern - Bitcoin Trading

Technical Analysis of Bullish and Bearish Engulfing Patterns

The color of the first candlestick indicates the trend of the day.

The second candlestick should completely engulf the first candlestick and 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