Morning Star Pattern

Morning Star is one of the commonly used candlestick patterns in quantitative trading, representing a bullish reversal pattern.

Calculation Principle

Morning Star pattern is identified by the following conditions:

1. First day: A long bearish candle
2. Second day: A small-bodied candle (doji or small bearish/bullish)
3. Third day: A long bullish candle
4. There is a gap between the second and first candles
5. Third day's close penetrates into the first day's body
6. Penetration depth is controlled by the penetration parameter (default: 0.3)

Parameter Description

• Input Parameters:
  • Open: Opening price
  • High: Highest price
  • Low: Lowest price
  • Close: Closing price
• Parameters:
  • penetration: Degree of bullish candle body penetration into bearish candle body (default: 0.3)

Usage Recommendations

1. Use in combination with other technical indicators
2. Pay attention to the overall market trend
3. Monitor volume confirmation
4. Set reasonable stop-loss levels
5. Watch for false breakouts

Notes

• Ensure data quality
• Pay attention to pattern completeness
• Consider market environment
• Watch for false signals
• Combine with fundamental analysis
• Pay attention to risk control
• Regularly evaluate strategy effectiveness
• Optimize parameters