Which is stronger, the morning cross star or the ordinary morning star? How much volume is needed?

The morning cross star and ordinary morning star are bullish reversal patterns in crypto trading, with the former featuring a doji for stronger reversal signals.

Jun 25, 2025 at 03:50 am

Understanding the Morning Cross Star and the Ordinary Morning Star

In technical analysis within the cryptocurrency market, candlestick patterns play a crucial role in predicting price reversals. Two such reversal patterns are the morning cross star and the ordinary morning star. Both appear during downtrends and suggest potential bullish reversals, but their structures differ slightly, which affects their strength and reliability.

The ordinary morning star consists of three candles: a large bearish candle, followed by a small-bodied candle (either bullish or bearish), and finally a large bullish candle that closes within the range of the first candle. The morning cross star, on the other hand, replaces the second candle with a doji, which is a candle where the opening and closing prices are nearly identical, forming a cross-like shape. This doji suggests indecision in the market and often indicates a stronger reversal signal due to the hesitation shown by sellers.

Structure and Significance of Each Pattern

The morning cross star pattern includes a doji as the second candle, making it visually distinct from the ordinary version. This structure implies a stronger shift in momentum because the doji reflects an equilibrium between buyers and sellers after a strong downtrend. In contrast, the ordinary morning star uses a small-bodied candle that may not carry the same weight of indecision.

Traders often consider the morning cross star more reliable because the doji represents a momentary pause in selling pressure, suggesting that bears are losing control. However, this does not always guarantee a stronger move; context matters. If the ordinary morning star appears with strong volume and confirmation, it can be just as potent as its cross counterpart.

Volume Considerations for Confirmation

Volume plays a critical role in validating both the morning cross star and the ordinary morning star. A key factor traders look for is whether there's a noticeable increase in volume during the third candle, which should be a bullish engulfing candle. High volume during this phase reinforces the likelihood of a genuine reversal.

For the morning cross star, volume during the doji (second candle) might be lower, which is normal as it reflects market indecision. However, volume should rise significantly on the third candle to confirm buyer dominance. In the case of the ordinary morning star, similar logic applies — volume should expand on the final bullish candle to support the reversal.

Some traders also examine volume during the first candle. A sharp drop with high volume suggests strong selling pressure, making a subsequent reversal more meaningful if confirmed.

How to Identify These Patterns on Cryptocurrency Charts

Identifying these candlestick formations requires attention to detail and understanding of chart dynamics. Here’s how you can spot them:

• Look for a clear downtrend before either pattern appears.
• For the morning cross star, ensure the second candle is a doji with equal open and close prices.
• In the ordinary morning star, the second candle should be a small body, not necessarily a doji.
• Confirm that the third candle closes at least halfway into the range of the first candle.
• Check volume patterns across all three candles to strengthen your conviction in the signal.

These patterns work best when aligned with other indicators like moving averages or RSI to filter out false signals. In fast-moving crypto markets, false breakouts are common, so additional filters are highly recommended.

Practical Trading Strategies Using These Reversal Patterns

Once identified, both the morning cross star and the ordinary morning star can serve as entry points for long positions. Traders typically place buy orders once the third candle closes above the midpoint of the first candle. Stop-loss levels are usually placed below the low of the second candle to manage risk.

Profit targets can be set based on recent swing highs or using Fibonacci extensions. Some traders prefer scaling out of positions rather than taking all profits at once.

If trading the morning cross star, given the presence of a doji, some traders wait for the next candle after the third one to confirm continuation before entering. Others may enter immediately upon close of the third candle if volume supports the move.

Risk-reward ratios should be considered carefully, especially in volatile crypto assets. A minimum 1:2 ratio is commonly used to ensure profitability over time.

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Frequently Asked Questions

What is the difference between a morning cross star and a hanging man pattern?

The morning cross star is a bullish reversal pattern that appears in downtrends, while the hanging man is a bearish reversal pattern found in uptrends. Their structures and implications are entirely different. The hanging man looks like a hammer but appears at the top of a trend, signaling potential weakness.

Can these patterns fail even with high volume?

Yes, no candlestick pattern is 100% accurate. Even with high volume and proper formation, morning cross stars and ordinary morning stars can fail due to sudden news events, whale movements, or broader market shifts. Always use stop-loss orders and combine with other tools for better accuracy.

Should I trade these patterns on higher timeframes only?

While these patterns can appear on any timeframe, they tend to be more reliable on higher timeframes like 4-hour or daily charts. Lower timeframes are prone to noise and false signals, especially in cryptocurrency trading where volatility is high.

How long should I hold my position after entering on these patterns?

Position holding duration depends on your strategy. Day traders may exit within hours, while swing traders could hold for days. It’s essential to define your profit target and stop-loss levels before entering the trade.