Morning Star
BullishReversalIntermediateA big red candle, a tiny star at the bottom, then buyers push back hard.
Verdict: SkipBitcoin 4H: 4 trades, won 50%, avg trade +1.0% vs random day +0.4% (too few trades to judge). Backtest
Price keeps sliding. Every bounce gets sold.
step 1/8
Trade rules
| Direction | Long (buy) |
|---|---|
| Entry | After a decline: a big red candle, a small-bodied star at or below its close (the lowest point of the three), then a green candle closing above the red body's midpoint. Then a candle CLOSES above the pattern's high within 3 candles. |
| Cancelled if | Price trades below the star's low before that close. |
| Target | 2x the pattern, projected from the breakout |
3 common mistakes
- Buying the third candle before price closes above the pattern's high.
- Calling any small candle a star: it has to sit at the bottom, below the red candle's body.
- Taking it in a sideways range: it needs a real decline to reverse.
Backtest
same rules every time · equal size · no fees · method| Market | Trades | Won | Avg trade | Random day |
|---|---|---|---|---|
| Bitcoin · 4H · 2017-2026 · too few trades to judge | 4 | 50% | +0.98% | +0.42% |
| US large caps (50) · 1D · 2016-2026 | 53 | 47% | +0.23% | +0.94% |
Verdict: SkipIt made money, but less than buying on a random day. Bitcoin had too few signals to judge.
pattern +12%random +50%