Morning Star Reversal Strategy Diagram
Русский | 中文 | Español | Deutsch | Português | 日本語
The Morning Star is the classic three-candle bottom: a wide down candle, a small hesitant candle, and a wide up candle that recovers more than half of the first one. Its mirror image, the Evening Star, marks a top. This diagram recognizes both shapes with candle pattern blocks, opens a position only when it is flat, and hands the trade back as soon as price closes on the wrong side of a simple moving average.
Strategy Overview
- Two candle pattern indicator blocks carry custom three-candle expressions: the first candle has a real body and points the wrong way, the middle body is smaller than half of it, and the third candle closes past the midpoint of the first.
- A simple moving average of the closing price is the only exit reference; the diagram has no stop loss and no take profit.
- The position block is compared against zero so a pattern is acted on only from a flat book, never as an addition to an open trade.
Entry and Exit Rules
- Long entry: The Morning Star block reports the pattern on the candle just finished and the position is zero. The order buys one lot and opens a long.
- Short entry: The Evening Star block reports the pattern on the candle just finished and the position is zero. The order sells one lot and opens a short.
- Exit: A long is closed by a position modify block in close mode as soon as a candle closes below the moving average; a short is closed the same way once a candle closes above it. There is no protective stop.
Parameters
| Parameter | Default | Description |
|---|---|---|
| SMA Length | 20 | Averaging length of the simple moving average that closes the trades. |
| Volume | 1 | Order volume, in lots. |
| Candles | 00:05:00 | Five-minute candle time frame used by the whole diagram and the packaged gallery history. |
Diagram Details
- The candle block feeds four branches: the two pattern indicators, the moving average and a converter that reads the closing price.
- Each pattern block holds a three-condition expression pattern, so the shape is recognized without a chain of formula blocks.
- Two comparison blocks put the closing price on one side of the moving average or the other and trigger the two closing blocks directly.
- Each logical AND joins one pattern with the position guard and fires an entry block; both entry orders take their volume from one shared constant, while the closing blocks compute it from the open position.
Usage
Import the .json file into Designer, run it in the backtester on historical data, then adjust the parameters or the blocks themselves to fit your instrument before trading it live.