Morning star pattern is formed at the bottom of a downtrend and it gives us a warning sign that the ongoing downtrend is going to reverse. It is a triple candlestick pattern that indicated bullish reversal.
To trade morning star pattern with technical indicators -
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Bollinger Bands - Morning star is formed after a bearish trend and signals bullish reversal. When using the one should enter the trade when the morning is formed below the lower Bollinger band.
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Relative Strength Index - For this strategy, we will be using 5 periods RSI. We will enter into the buy position when the RSI moves above 30, from below with the formation of the morning star on the chart.