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The Morning Star is a candlestick pattern that works well in every financial market as a typical bullish pattern. Most price action traders use this pattern to identify the potential buying point of a trading instrument.
Candlestick trading is commonly used in the cryptocurrency market; not only it helps traders to assess the market trends, but the implementation of modern candlestick charting on most trading platforms also makes them extremely accessible. Still, the cryptocurrency market is new and still emerging, compared to the traditional forex (FX) or stock markets, where investors face a lack of sufficient previous data important for using candlestick analysis. However, for most of the top-tier crypto coins, there is a fair amount of historical data available so that you can easily apply candlestick analysis to it.
The morning star candlestick is usually used for technical analysis as it provides similar price action to other formations, such as hanging man, doji, and evening star.
Without further ado, let’s get down to the nuts and bolts of the morning star pattern in the cryptocurrency market.