There are many different ways of trading the forex market and trading style and strategies completely vary from traders to traders. Among many different styles and trading technique, price action trading strategy is now getting huge popularity among the traders. Those who are trading the forex market for a long period of time knows exactly how important it is to master the art of price action trading strategy. In this article, we will learn how to trade the bullish morning star pattern in any financial asset.
What is bullish morning star price action signal?
A bullish morning star pattern is a price action confirmation signal which gives the traders bullish reversal signal in the market. The bullish morning star pattern is comprised of three different candlestick pattern.
Let’s see the formation of bullish morning star pattern
Figure: Bullish morning star price action candlestick pattern
The first candle is a big red candle which is in favor of the long-term bearish trend in the market. The second candlestick is the doji or bullish pin bar which shows the indecision of the market. When the doji or pin bar forms (the second candle of this pattern) in this pattern professional price action traders look for bullish confirmation signal in the market. In the above figure, you can clearly see that the third candle is the bullish confirmation signal in the market. Professional traders execute their long orders in the market as soon as they these type of candlestick pattern formation near the key support or resistance level in the market.
Trading the bullish morning star pattern is extremely profitable and reliable in the forex market. But before you trade this pattern make sure that you know how to draw the support and resistance level properly on your trading chart.To learn about support and resistance level click here.