K-line Patterns: Custom Indicators for Morning/Evening Star to Catch Short-Term Trends 🚀

⭐ A Technical indicator with code that you may want to save and use ❤

Hey Mooers!❤  Wanna know a cool way to predict market turns? Check out 🕯️ Morning Star & Evening Star candlestick patterns! They're like little signals in your charts that say, "Hey, this trend might be changing soon!"🔍These patterns are made up of three candles and they often pop up when a trend is reaching its peak or bottom. Traders use them to get a heads-up on potential market moves. 📈📉

📚 Got a few minutes? Do these quick things:
1. Read this article thoroughly! 📖 Don't skip a single word!
2. Add the indicator to your system! 🔧
3. Check out how this indicator performs on your favorite stocks! 📈 Is it a winner or a loser?
4. Snap a screenshot of your updated system & share your thoughts & doubts in the comments! 👇

1. 🌅 Morning Star（MST）:
This bullish reversal pattern often emerges at the bottom of a downtrend, signaling a potential trend reversal from down to up. It comprises three candles:

🔸 A large bearish candle with a significant body.
🔸 A small-bodied candle, known as a star candle, which can be bullish or bearish and appears below the body of the first candle, indicating market uncertainty.
🔸 A large bullish candle with a substantial body that covers at least the body of the second candle and starts to erode the body of the first candle, signifying buyer control over the market.

💻 Code Snippet:
COND1:=REF(CLOSE,2)/REF(OPEN,2)<0.95;
COND2:=REF(OPEN,1)<REF(CLOSE,2);
COND3:=ABS(REF(OPEN,1)-REF(CLOSE,1))/REF(CLOSE,1)<0.03;
COND4:=CLOSE/OPEN>1.05;
COND5:=CLOSE>REF(CLOSE,2);
COND:=COND1 AND COND2 AND COND3 AND COND4 AND COND5;
DRAWICON(COND,0.98*L,4);
DRAWTEXT(COND,0.95*L,'READY TO ▲');

📈📉 Code Breakdown:
🔍 COND1: REF(CLOSE,2)/REF(OPEN,2)<0.95;
Did the stock drop more than 5% from open to close two days ago? If yes, it's a bearish signal. 🐻❄️
🔍 COND2:REF(OPEN,1)<REF(CLOSE,2);
Is yesterday's open lower than the previous day's close? If so, the downtrend might continue. ⬇️
🔍 COND3: ABS(REF(OPEN,1)-REF(CLOSE,1))/REF(CLOSE,1)<0.03;
Was there price stability yesterday with less than 3% fluctuation? If true, the market was relatively calm. 🌊
🔍 COND4: CLOSE/OPEN>1.05;
Did today's close surge more than 5% from the open? If yes, it's a bullish signal! Bulls are in control. 🐂
🔍 COND5: CLOSE>REF(CLOSE,2);
Is today's close higher than two days ago? If true, prices have risen in the past two days. 📊
🔍 COND: COND1 AND COND2 AND COND3 AND COND4 AND COND5;
All the above conditions must be met! Only then will COND be true. 💯
📌 DRAWICON: DRAWICON(COND, 0.98*L, 4);
Mark the potential trend reversal! When COND is true, draw an icon at 98% of the low price.

2. 🌙 Evening Star （EST）:
This is a bearish reversal pattern often seen at the peak of an uptrend. It signals a potential trend reversal, indicating that prices might shift from rising to falling. This pattern consists of three candlesticks:

🔸 A large bullish candlestick representing a strong up day.
🔸 A small candlestick (star) that gaps up from the previous day's real body, adding uncertainty to the market.
🔸 A large bearish candlestick that closes below the star's real body and begins to erode the real body of the first candle, suggesting sellers are taking control.

💻 Code Snippet:
COND1:=REF(CLOSE,2)/REF(OPEN,2)>1.03;
COND2:=REF(OPEN,1)>REF(CLOSE,2);
COND3:=ABS(REF(OPEN,1)-REF(CLOSE,1))/REF(CLOSE,1)<0.02;
COND4:=CLOSE/OPEN<0.97;
COND5:=CLOSE<REF(CLOSE,2);
COND:=COND1 AND COND2 AND COND3 AND COND4 AND COND5
DRAWICON(COND,1.02*H,5);
DRAWTEXT(COND,1.05*H,'READY TO ▼');

📈📉 Code Breakdown:
🔍 COND1: REF(CLOSE,2)/REF(OPEN,2)>1.03;
This checks if the close price two days ago was up at least 3% from the open price that day. If so, it's a bullish sign indicating a strong day. 💪
🔍 COND2: REF(OPEN,1)>REF(CLOSE,2);
📈Did yesterday's open price surpass the close price two days ago? If it did, the uptrend might be rolling on. 🚀
🔍 COND3: ABS(REF(OPEN,1)-REF(CLOSE,1))/REF(CLOSE,1)<0.02;
Did yesterday's price movement stay within a 2% range? If it did, the market was relatively calm and stable. 🌊
🔍 COND4: CLOSE/OPEN<0.97;
Did today's close price drop at least 3% from the open? If it did, that's a bearish signal, indicating selling pressure. 🐻❄️
🔍 COND5: CLOSE<REF(CLOSE,2);
Is today's close price lower than it was two days ago? If it is, prices might be trending down. 📉
🔍 COND: COND1 AND COND2 AND COND3 AND COND4 AND COND5;
This master condition requires ALL the above conditions (COND1 to COND5) to be met. It's like a perfect storm of bullish signals followed by stability and then a sharp drop. 🌪️
📌 DRAWICON: DRAWICON(COND,1.02*H,5);
If the master condition (COND) is true, i.e., all the above conditions are met, mark it!

The occurrence of MST and EST in large-cap stocks is relatively rare😵😵😵, but once they do appear, the accuracy rate is pretty high.
Because it takes a ton of money and momentum to move the entire market, once a short-term trend is formed, it's pretty much irreversible for a considerable period.
So spotting MST and EST indicators in large-cap stocks is like finding a needle in a haystack. 👀
Tesla has only shown the EST indicator 4-5 times in recent years, and the market has trended downward after each signal. 📉

Remember to ❤ & 💬 + follow 🔔, gonna share more in the future~
Peace out, y'all!
🚀🚀🚀🚀🚀🚀