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Morning star candle pattern buyer-seller psychology
Morning star candle pattern buyer-seller psychology:
The sellers are in complete control in the downtrend before the pattern starts,
* The first candle in that pattern sells heavily, and with the Big Red candle the sellers paint a picture of their full control.
• The opening of the 2nd candle has a selling down through a gap down, then the sellers start buying when the price goes down. This leads to a lot of buyer-seller fights and an indication of small body red / green candles.
* The seller loses control of the 3rd candle through the gap up and the buyer takes full control of the green candle. The uptrend begins.
# Conservative traders wait for the 4th candle for confirmation and many enter the 3rd candle gap up
The sellers are in complete control in the downtrend before the pattern starts,
* The first candle in that pattern sells heavily, and with the Big Red candle the sellers paint a picture of their full control.
• The opening of the 2nd candle has a selling down through a gap down, then the sellers start buying when the price goes down. This leads to a lot of buyer-seller fights and an indication of small body red / green candles.
* The seller loses control of the 3rd candle through the gap up and the buyer takes full control of the green candle. The uptrend begins.
# Conservative traders wait for the 4th candle for confirmation and many enter the 3rd candle gap up
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Feragatname
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