Let's now move on to the last.
Bullish reversal, candlestick burden, that is Morningstar, the Morningstar contains three candidates,
as you can see on the left side.
First scandal is Burish, one second candle.
Is a dodgy.
Isn't it first, Canada is very scandal, second candle is a dodgy idea, ideally speaking, dodgy should
form below the close of this particular candle.
But actually in practical, you may not find it like this.
You may get to do some work here or maybe somewhere down below here.
OK, so it's OK when you do this phone here as well.
But ideally speaking, it should be below the close of this very candle and third candle.
Third candle is very important.
Kurt Campbell is a bullish one.
It can start anywhere.
It can start above this, below this or at this point, that is not important.
What important is that?
Close this close should be above the height of this candle.
This is very important.
If this is not the case, then Morningstar does not exist, so for scandal is a very scandal.
Market is in downturn for scandals from Burish one, then you have a dodgy which can get from anywhere.
Kirkendall is a bullish scandal which can open Gapo, which can open lower anywhere.
But exclosure should be above the high of the first bearish candle.
This candle is very sorry.
This pattern is very powerful.
And when it comes in the market, it is a strong reversal pattern that you can see.
What is the logic behind this pattern?
Try to understand.
For example, we we have bear candle.
So for example, this is what is happening so fast can formed like this.
But this is a false candle, something like this.
Now we have a second candle, say, for example, this one, Dorji, which opened at this place, and
it is creating something like this.
So there is no much movement and this is how it doges formed.
And Third Candle is a bullish one.
Say, for example, it opens here and it.
You know, aggressively goes up and closes above this high.
So when this happens, you you get this kind of morning star, so what does it indicate?
Try to understand it indicates that sailor.
In this case, they are in control, this indicates that sellers have exhausted their lost the fuel.
There is no fuel left to pull the market down.
And this is where both take benefit of this.
And the Bush market higher and above the high of this resistance which was created, and this is how
Morningstar is formed, and therefore Morningstar is a very powerful reversal, bullish pattern that
you will observe in the market.
So could recap Morningstar is a three candle pattern.
It should get formed when market is in downtrend for scandal is a bearish scandal.
Second is a dodgy, isn't it?
And third candle is a bullish candle which closes above the first candle.
This is fifth point is very important.
If it does not lose, it is not necessary just to have a bullish can.
No, it should close above the high of first candle because that is when this resistance will be broken
into.
That is that is what we want.
So here this Dougie, Dougie Vitalogy important because it indicates that sellers have lost the fuel.
If you add fuel is not there to push the market down.
Sailors are exhausted and therefore both here take control of the market and they try to reverse the
market.
This is the logic behind Morningstar, novelty example of Morningstar and see whether it works in the
market or not.
This is the.
Sort of d.c.'s.
Do you see a morning here?
I can spot a few morning stars and we'll see which worked and which didn't.
This is first one.
Market in downturn one.
Then you have Morningstar, isn't it?
This is the first scandal, very scandal, second logical and third is Bouley scandal, which closed
above the.
Clues about the high of this bully scandal, so we have a second one that is also getting formed and
next candle is important.
Don't immediately find out the next candle.
So next candle has open bullish.
So all parameters are correct.
And I can tell you that if you calculate the risk reward here, this would have been somewhere here,
somewhere in here.
And next, immediate resistance is this one.
So from this point to this point, you can just find out that this is smaller than this.
So your risk is lesser than your reward.
So this is an example where Morningstar worked.
Let me ask you a question, let me ask you a question, is this a Morningstar?
But we are very candid and bullish on this morning's top.
The answer is no, this is not a Morningstar because, see, first is a British scandal.
Secondly, the dodgy but third scandal, although it is a bullish canley, did not close above the high
of this.
It was below this point.
And therefore, we will not consider this dodgy pattern, although it worked.
It worked because the next day market opened the gap.
But, yes, technically speaking, we are not taking this trade.
I'll give you another example of Dorjee, this one.
So we have these three patents.
This is the first one.
This is the second one.
Third one.
But we are not going to take this because it did not come when market is falling, it has come when
market is rising.
And that that is not the purpose of Morningstar because Morningstar is a trend reversal pattern.
So ideally speaking, bearish trend should get reversed after this pattern is formed.
So that is the logic behind Morningstar.
I'll show you a Morningstar where it did not work.
So it came on Tata Motors.
In 2019.
Yes, this is a graph of Tata Motors, can you support the Morningstar here?
Yes, you can see that this is where we have our morning star.
But try to understand in this case, there are four candidates.
This is the first one, which is Burish, the second one, this is dodgy, and third one is also a dodgy
and fourth one is a scandal which blows above the high of this very scandal.
So even though there are two doges, we will consider this because ultimately, ultimately, what is
the logic?
Say, for example, market is falling, OK, the market is remaining stagnant.
So this is the first and one second.
Also, market is remaining stagnant.
This is technology that is getting formed.
And then you have high end, which is closed.
So this is OK.
You have to treat wages are there.
It is OK.
Don't just go by the rule book.
Try to understand what it is trying to tell you.
OK, so basically this is a this is a Morningstar, but.
It did not work, isn't it?
It should have gone up, but it did not happen.
Market went down.
Know why it went down?
Let's understand.
See, I'll just zoom in a bit.
See here, after getting the morning start, morning studies completed when this scandal is finished,
no see the next scandal, next scandal has opened lower.
Did it open bullish?
No.
Then are we going to take this straight?
No, because it should open bullets, because that is the whole logic behind Morningstar when we are
seeing that trend is getting reversed and the next scandal is opening lower, then.
Does it indicate that trend is getting reversed?
Not at all.
Market should have open somewhere here, somewhere here, somewhere here, which did not happen.
And therefore, in this case, although it was a Morningstar that failed.
So we have to use filters like this to.
Find out the best.
Trades, high probability trades, I hope you have understood this.
Let's now go to the next concept.