What is Morning Star?

What is Evening Star?

How can we earn profit using Morning & Evening Star?

Everyone in his / her  life try hard to earn money either by business or job. But we must accept also that only earning is half story until we don’t invest in right assets. Now question is this why people looking for stock market investment?

I personally believe it is best source for passive income in world. But you must have  knowledge to earn money from stock market. We are using technical analysis approach to find right opportunities for investment and trading. If you know technical analysis pattern and following them means you can build empire of wealth in stock market.

Morning star :-

As name implies everyone like rising sun in life. Morning star is bottom out pattern that ensure you that now selling is over, weak time has gone you can start buying in to stock. We can understand this patter by following process.

Formation :-

Morning star occur when negative negative trend is going to be over. It is 3 days process to confirm Morning star pattern.

First day : – 

Stock price were going down due to any reason. Market is showing negative trend with good volume.

Second day:-

2^nd day  you will find Dozi on the bottom side. Dozi is symbol that market is tired so selling is over. Dozi never confirm trend, but its next day candle will confirm trend.

Third day : – –

If there is any positive movement in stock price on 3^rd day and stock showing recovery / good gain and closing price must be on higher side to maintain recovery of stock. It confirm Morning star pattern which is a buying opportunity for investor / trader.

Evening Star:-

Evening star It is a  major top reversal pattern formed by three candle and also confirm on 3^rd day like Morning star.  It is a early selling signal for investor that you can star profit booking very soon. Wise investor always take befits from such kind of technical analysis pattern in stock market.

Formation :-

Evening star occur when bullish trend is going to be weak and negative trend going to star very soon. It is trend reversal pattern so we must take care to ripe the profit from our investment.

It is 3 days process can be understand by following process : –

First day : – 

Stock price were going high due to any reason. Market is showing positivity in   trend with good volume.

Second day:-

2^nd day  you will find Dozi on the top side. Dozi is symbol that market bull run  is tired so buying is  over. Dozi never confirm trend, but its next day candle will confirm trend. So we will wait for next day candle

Third day : – –

If there is any negative  movement in stock price on 3^rd day and stock showing weakness in price and volume and closing of the stock price also in negative as started in the morning. Evening star pattern is confirmed you can star profit booking or short selling in the particular stock.

Disclaimer: – Post is just for education purpose kindly discuss with your financial adviser before actual investment in stock market.