Morning Star or Not??

Luckytrader · #1 27th October 2007, 09:02 PM

MORNING STAR PATTERN

Meaning:(Refer Chart)

The Morning Star Pattern is a bullish reversal pattern, usually occurring at the bottom of a downtrend. The pattern consists of three candlesticks:

• Large Bearish Candle (Day 1)
• Small Bullish or Bearish Candle (Day 2)
• Large Bullish Candle (Day 3)

STEPS TO RECOGNISE MORNING STAR:
1.Downtrend
2.Bearish Candle
3.Gap Down
4.Small bullish/ bearish candle
5.Gap up
6.Bullish Candle

I have a doubt regarding Morning star candlestick pattern in HDIL

Plz Refer HDIL Chart.

In HDIL all condition are fulfill except third one (Gap Down),
So, does this pattern qualifies for morning star or not?

Please comment on this one...

Thanks & Regards

Blaiserboy · #2 28th October 2007, 06:32 AM

I am not too sure if that qualifies or not. here is a different look at Morning Star

Mandar Datye · #3 28th October 2007, 09:52 PM

To the BEST of NY KOWLEDGE it's BULLISH HARAMI CROSS OVER & not MORNING STAR.

shivaraja · #4 28th October 2007, 10:29 PM

I used amibroker (prebuilt AFL files) to identify morning star as of 26OCT EOD....i've attached the list...

-Shivaraja

chintan786 · #5 29th October 2007, 12:05 AM

I have few questions..

1) Who much rliable are these patterns and reversals? is i need to apply sme thing more to conform it?

2) wht is Dark Cloud Cover?

3) Is alphgeo ( daily charts) qualify for mornin star. (on 25 Oct)

Luckytrader · #6 29th October 2007, 02:13 PM

Quote:

Originally Posted by Blaiserboy

I am not too sure if that qualifies or not. here is a different look at Morning Star

Thats the Morning Doji Star....
In HDIL there is no doji (means indecision).

Thanks & Regards

sachin.sonu · #7 29th October 2007, 02:15 PM

Hi Guys,
Whenever you see any patter in Downtrend or uptrend..It doesn't mean that the trend is going to reverse but you can say that the previous trend is going to end and it will either sideline or will reverse. But you have to watch for other technical Indices for this to confirm. Just looking at the candle stick pattern doesn't hhelp

Also let me tell you ..Different people will view the same pattern in different way ..For example some people will call was Bullish harami pattern some will called it as morning star. It depends upon Individual view..just like the doctors..Different doctor will recommend you different treatment for the same disease.

hope this helps..
If you want to learn more about Candle sticks..Let me know we can go through one by one..

regds
sachin

Luckytrader · #8 29th October 2007, 02:33 PM

Quote:

Originally Posted by Mandar Datye

To the BEST of NY KOWLEDGE it's BULLISH HARAMI CROSS OVER & not MORNING STAR.

A bullish Harami occurs when there is a large bearish red candle on Day 1 followed by a smaller bearish or bullish candle on Day 2.

The most important aspect of the bullish Harami is that prices should gapped up on Day 2 and should not be able to move lower back to the bearish close of Day 1.(See Chart)

In HDIL on Day2 the prices was gapped up but was able to move lower back to the bearish close of Day1…….this disqualifies Harmani Bullish.

I dont know how did you recognise it as a Bullish Harmani??

Thanks & Regards
Luckytrader.

Luckytrader · #9 29th October 2007, 07:30 PM

Quote:

Originally Posted by sachin.sonu

Hi Guys,
Whenever you see any patter in Downtrend or uptrend..It doesn't mean that the trend is going to reverse but you can say that the previous trend is going to end and it will either sideline or will reverse.

But you have to watch for other technical Indices for this to confirm. Just looking at the candle stick pattern doesn't hhelp

Hi,

In Candlestick Morning Star Pattern is a bullish reversal pattern, usually occurring at the bottom of a downtrend.

ITS THE RULE.

So, the prices must reverse,
In this case the prices didnt reverse or it will reverse in future.....as i think.

Tell me as u said,
which technical indices i use to confirm Morning Star Pattern?

Thanks & Regards,
Luckytrader.

sachin.sonu · #10 30th October 2007, 09:42 AM

Quote:

Originally Posted by Luckytrader

Hi,

In Candlestick Morning Star Pattern is a bullish reversal pattern, usually occurring at the bottom of a downtrend.

ITS THE RULE.

So, the prices must reverse,
In this case the prices didnt reverse or it will reverse in future.....as i think.

Tell me as u said,
which technical indices i use to confirm Morning Star Pattern?

Thanks & Regards,
Luckytrader.

Look for RSI, stocastic and other technical Indices which works for you.

regds
sachin