Unit 3 · Multi-Candle Stories

Morning & Evening Stars

The three-act reversal: pressure, pause, confirmation.

Act one, two, three

A strong candle continues the trend, a small-bodied candle pauses (the star), then a strong candle snaps back into the first body. Three candles, one complete argument.

The evening mirror

After a rally: strong green, small pause on top, strong red back into the first body. The last buyers of the move are now the fuel of the drop.

Why three beats one

Each candle removes an excuse: the first proves the trend existed, the pause proves it stalled, the third proves the flip. More evidence, fewer traps — at the cost of a later entry.

Quick check

The third candle of a morning star must…
  • Close well into the body of the first candle
  • Be the biggest candle ever printed
  • Gap down
  • Be red

Confirmation is the point: without a strong close back into the first body, the "star" was just a rest stop.

Play the interactive version →

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Educational content only — not financial advice.