Morning Star and Evening Star Pattern

In candlestick charting, the Morning Star and Evening Star are specific candlestick patterns that indicate potential trend reversals. 

Let me explain each pattern:

Morning Star: The Morning Star pattern occurs during a downtrend and is considered a bullish reversal pattern. It consists of three candles. The first candle is a long bearish candle, indicating selling pressure. The second candle is a small-bodied candle, which can be bullish or bearish, and it represents indecision in the market. The third candle is a long bullish candle that closes well above the midpoint of the first bearish candle. This bullish candle indicates a potential trend reversal, as buying pressure is overpowering the selling pressure.

Evening Star: The Evening Star pattern occurs during an uptrend and is considered a bearish reversal pattern. It also consists of three candles. The first candle is a long bullish candle, showing strong buying pressure. The second candle is a small-bodied candle, indicating indecision. The third candle is a long bearish candle that closes well below the midpoint of the first bullish candle. This bearish candle suggests a potential trend reversal, as selling pressure is overcoming buying pressure.

Both the Morning Star and Evening Star patterns are considered reliable when they appear after a significant trend, and they are often used by traders to identify potential entry or exit points in the market. However, it's important to note that candlestick patterns should be used in conjunction with other technical analysis tools and indicators for confirmation before making trading decisions.