Do candlesticks work across all time frames? Yes, they should work in all time frames because the market dynamic behind its construction is the same in higher charts than in lower ones. However, someone using a very short time frame like the one or five minute chart should be forewarned that there is more noise in small time frames, and that the opening and closing prices of these candlesticks aren’t as important as they are on a daily chart.
2.10 Morning Star candlestick pattern
The classical morning star is a three-day bottom reversal pattern on a Japanese candlestick chart. Like the planet mercury, the morning star announces that the sunrise, associated with brighter events, is about to occur. In the first day of the pattern the exchange rate is still in a downtrend manifested through a long real body. The following candlestick has a small real body compared to the previous one. And finally, the last candle is a candlestick that reverts back more than halfway into the first candle's real body. It represents the fact that the buyers have now stepped in and seized control. As for the validation criteria used in Forex, the middle candle, the star of the formation, has two different criteria as opposed to non-Forex environments: first, it doesn't have to gap down as it has to in other markets; second, its real body most of the time will be bearish or a doji. There a quite some variations of the morning star, which are covered in more details in the Practice Chapter of this Unit.
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