Morning star

“Morning Star”, as the name suggests, is that when the sun has not yet risen, the darkest hour before dawn, a bright Venus star guides those who walk towards the light at night, and the future is certainly promising.

In the foreign exchange market, the “morning star” on the K-line chart indicates that the decline will be over. The market is on the eve of the rise, and the market is getting rid of the shadow of the decline and gradually moving towards the light.

The morning star is generally composed of 3 K lines over 3 trading days:

On the first day, the price continued to fall, and a huge negative line appeared due to the panic selling, which was not good.

The next day, the gap fell, but the drop was not large, the physical part was shorter, forming the main part of the star. The part that forms the star can be either the Yin line or the Yang line.

On the third day, a Changyang line pulled up, the price recovered most of the loss on the first day, and the market sent a clear bullish signal.

Evening star

The graphic of the evening star indicates that the market trend has peaked, and the time to sell is quietly coming. The chance of the twilight star acting as the top is very high, and in the later period of the bullish momentum, you should be particularly vigilant about this reversal signal.

The evening star is also composed of 3 K lines:

On the first day, the market continued to rise in a carnival, and a Changyang line was pulled out.

The next day, it continued to rise, but the tail fell back, forming an upper shadow, and the solid part was narrow, forming the main body of the star.

On the third day, there was a sudden drop and occasional panic selling pressure. The price pulled out a long shadow and erased most of the previous two days.

“Twilight Star” is a turning negative form composed of three candlesticks, usually appearing after an upward trend.

  1. The first candlestick is a large white candlestick that undertakes the previous upward trend. The buying is strong, indicating that the upward trend continues;
  2. The second candle can be a Doji or a spindle that appears after the rift is opened high. This signal shows that buyer pressure has gradually eased, and prices are likely to have peaked. If the second candlestick has the same upper shadow as the shooting star, the reliability of the bearish turn signal is more improved;
  3. The third candlestick is a strong black candlestick. At this time, the market conditions have undergone a fundamental change, and the downward trend continues until the market closes.